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Intra Industry Claims Agreement
(IICA Overview)

Applies to injury and personal property damage claims of non-railroaders injured account a defect while a railroad car is located at an industry and not in transit.

There are a number of rules which apply to who ultimately will be assessed culpability for the overall award or settlement. The ORIGINATING CARRIER could be found responsible if: " ... the ACCIDENT is attributed to a DEFECT which can be shown to have existed at the time the CAR was appropriated by a shipper, the full responsibility for COSTS shall be borne by the ORIGINATING CARRIER, except as provided in Rules 5 and 14. As such, you must fully investigate each incident.

The IICA does not apply to lading or railroad employee injuries except for that permitted by Part II, Rule C. "As respects all other CARRIERS, each POSSESSING CARRIER shall assume full responsibility, and hold harmless and indemnify all other CARRIERS, irrespective of their negligence, for loss arising from death, injury, or property damage sustained by an employee of the POSSESSING CARRIER due to an ACCIDENT."

If an employee is injured on a foreign line car involving a hidden defect (or obvious defect), when taking the release consider adding the foreign and intermediate CARRIER's onto the release. The IICA may not apply if non-CARRIERS (e.g., non signatory Railroad) are involved in the movement of the car. Rule 2 states "This agreement applies only when all participants in a MOVEMENT are CARRIERS ... " Car owners, industry movements, and switching railroads do not count in the movement.

The IICA requires that POSSESSING CARRIER investigate all accidents

The POSSESSING CARRIER must represent the originating and all intermediate carriers for litigation purposes.

If you are not a POSSESSING CARRIER, monitor the claim to ensure that your interests are being protected. Be cognizant of the punitive damage issue and ensure that your excess insurance carriers are notified. If appropriate, you might need to consider separate counsel.

Review all IICA cases with your Director.

Care must be taken to make timely investigations, and place other CARRIER'S, insurance providers, and other parties on timely notice.

When you are the POSSESSING CARRIER, there are specific settlement authorities listed in the agreement. Review the entire agreement before making settlement offers. Include all other signatories of the IICA who are claimants or potential claimants on the release.

IICA Rule 4

When an ACCIDENT occurs, the POSSESSING CARRIER, regardless of the car's ownership or the history of its loading, routing or interchange, shall:

• A.) Investigate the ACCIDENT.
• B.) Negotiate, settle and pay claim(s) or lawsuit(s) subject to the following:
  • 1.) POSSESSING CARRIER may, without concurrence of the other interested CARRIERS, settle any claim(s) or lawsuit(s) resulting from that ACCIDENT, up to a limit of $10,000.00 in the aggregate.
  • 2.) Following compliance with Rule 6, POSSESSING CARRIER may, without concurrence of the other interested CARRIERS, settle any claim(s) or lawsuit(s) resulting from that ACCIDENT to a limit of $25,000.00 in the aggregate.
  • 3.) Following compliance with Rule 6, and with concurrence of all other interested CARRIERS as to amount, POSSESSING CARRIER may settle any claim(s) or lawsuit(s) resulting from that ACCIDENT.
  • 4.) Ultimate distribution of the COSTS of that ACCIDENT will be governed by the provisions of this agreement.
  • 5.) Following receipt of investigation file, as provided in Rule 6, any interested CARRIER may acknowledge full responsibility for COSTS flowing from that ACCIDENT and thereafter may discharge the responsibility of POSSESSING CARRIER for settlement of claim(s) or lawsuit(s).
• C.) Defend any lawsuit(s) and satisfy any judgment(s) resulting therefrom, including interest thereon.
• D.) In the event the involved CARRIERS fail to reach an accord as to the assignment or apportionment of COSTS, the case must be submitted to binding arbitration pursuant to the IICA. Rule 28 "Arbitration under this agreement shall be conducted by arbitrators and appeal arbitrators, and the decision of any panel thereof shall be by a majority of such arbitrators or appeal arbitrators. A panel of three arbitrators shall have original jurisdiction of all disputes submitted for arbitration, and their decision shall be final and binding on all parties in the absence of an appeal. Such appeal may be taken by any party to the dispute within ninety days after receipt of the decision of the arbitrators, and the appeal shall be decided by a panel of five appeal arbitrators whose decision shall be final and binding on all parties. Expenses of arbitration shall be apportioned in accordance with the provision of Rules 41 and 43, except that in the case of an appeal in a case which involves COSTS not exceeding $25,000.00 in the aggregate the appellant(s) shall bear all expenses of appeal."