Amtrak 2014 Annual Report Download - page 53

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 45
10. Commitments and Contingencies (continued)
In July 2010, the City of New York (NY City) filed a federal court action against Amtrak in the
Southern District of New York. NY City sought $25.0 million, alleging under several theories,
all based upon 1906 and 1909 agreements between NY City and other railroads, that Amtrak is
responsible for a major public highway bridge reconstruction project for the Shore Road Circle
Bridge in the Bronx. Amtrak disputed NY City’ s claims and filed a motion to dismiss on
jurisdictional grounds, which was granted on June 13, 2011. The case was transferred to the U.S.
District Court for the District of Columbia. The District Court granted Amtrak’ s motion for
summary judgment and denied NY City’ s claims. NY City appealed to the DC Circuit Court of
Appeals. On January 16, 2015, the DC Circuit ruled in Amtrak’ s favor, affirming the ruling of
the District Court. NY City did not pursue further motions or appeals and the case is now closed.
Amtrak is involved in various other litigation and arbitration proceedings in the normal course of
business, including but not limited to several distinct tort, contract and civil rights claims. The
outcome of these matters cannot be predicted with certainty. When management concludes that it
is probable that a liability has been incurred and the amount of the liability can be reasonably
estimated, it is accrued through a charge to earnings. While the ultimate amount of liability
incurred in any of these lawsuits and claims is dependent on future developments, in
management’ s opinion, recorded liabilities, where applicable, are adequate to cover the future
payment of such liabilities and claims. However, the final outcome of any of these lawsuits and
claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result
in additional accruals that could be significant to Amtrak’ s results of operations in a particular
year. Any adjustments to the recorded liability will be reflected in earnings in the periods in
which such adjustments are known.
Americans With Disabilities Act (ADA) Compliance
Under the ADA, stations in the intercity rail transportation system served by Amtrak were
required to be readily accessible to and usable by individuals with disabilities no later than
July 26, 2010, 42 U.S.C. §12162(e). This requirement applies to all components of a station used
by the general public, including passenger platforms, designated waiting areas, ticketing areas,
restrooms, and in some cases, concession areas. The Company has developed a plan to bring its
stations into ADA compliance. This plan is regularly updated and adjusted based on new
information and external factors, such as direction the Company receives from the FRA and
other government agencies. On June 9, 2015, the Department of Justice (DOJ) provided Amtrak
with a Letter of Findings and Conclusions regarding ADA compliance at Amtrak. DOJ has
indicated, both in its Letter of Findings and in its communications with Amtrak’ s counsel, that
DOJ intends to work cooperatively with Amtrak to negotiate a settlement or consent decree.