Prototype News

After a lawsuit between Reading & Northern and R.J. Corman, R&N’s purchase of Pennsylvania’s Luzerne County Redevelopment Authority rail assets will proceed.

The two companies reached an agreement late Tuesday after R.J. Corman filed a complaint on Oct. 2, challenging the fairness and legality of the sale process and seeking to void the agreement. In September, the redevelopment authority voted to sell to R.J. Corman. After Luzerne County Council vetoed the sale, the authority reversed course and chose the R&N bid instead — which the council approved, triggering the legal action.

R.J. Corman alleged that the authority engaged in a “fraudulent, anti-transparent, and unlawful effort” to award the rail lines to R&N. U.S. District Judge Julia K. Munley dismissed the case Wednesday and gave the parties time to complete a written settlement agreement.

The sale would include about 60 miles of track formerly operated by Pocono Northeast, some of which R.J. Corman operates under a lease.

Reading & Northern offered $7 million to buy the tracks and $3 million for rehabilitation, plus excursions out of Wilkes-Barre and increased freight service. R.J. Corman offered $8.2 million.

— Nick Stewart 

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