NORFOLK, Va. — Norfolk Southern said it received “an unfavorable ruling” an March 18 from an arbitration panel regarding an insurance claim arising out of the Jan. 6, 2005, derailment in Graniteville, S.C.
As a result, during the first quarter of 2011 Norfolk Southern will record an expense for the receivables for the contested portion of the claim ($43 million) as well as an expense for other receivables that may be affected by the decision (approximately $15 million), as it is not probable that these amounts will be recovered.
It is anticipated that NS will be responsible for certain legal costs of the insurance carrier associated with the arbitration proceeding, although the amount of such costs is not presently known.
