An Oklahoma federal judge on Monday ruled that a grain and fertilizer company that leased land from BNSF Railway Co. must fund the railroad giant's defense of a lawsuit over a train collision that left a truck driver dead, while also holding that BNSF is not entitled to coverage from the lessee's insurer, reports Law 360.
The Judge found that Morrison Grain & Ag Services Inc. is bound by the terms of its predecessor’s 1997 lease with BNSF for property adjacent to railroad tracks in Lela, OK, including the obligation to defend and indemnify the rail company for certain claims of bodily injury or death occurring on or near the premises.
As a result, Morrison must cover BNSF’s costs in connection with a pending wrongful death suit filed by the family of a man who was killed when his truck was hit by a train near the leased property.
BNSF and Morrison became embroiled in a dispute over the terms of a new lease in 2012, and the railroad company required its lessee to remove part of a building on the property, according to court documents. Morrison hired a company called Midwest Wrecking Co. to carry out the removal, court filings say.
The fatal accident occurred in May 2013, as Richard Knight, a Midwest employee, was traveling from the jobsite, according to court documents. Two years later, Knight’s heirs sued BNSF, Morrison, MGF and the train operator in Oklahoma state court.
