Significant Litigation Results

Following trial and appeal, Mr. Herman obtained a settlement in the amount of $1,250,000 from a railroad on behalf of a grain elevator for the railroad's failure to provide rail service to the grain elevator on reasonable request.

In a case involving the threatened assessment of taxes and penalties by the California Public Utilities Commission against a shipper-client of Mr. Herman's who shipped petroleum coke by truck from a refinery to a holding shed in Long Beach Harbor for eventual export, Mr. Herman filed an appeal with the California Supreme Court, forcing the CPUC to reverse its enforcement action. Following that, in an administrative hearing before the CPUC, Mr. Herman obtained an exemption for the client from the CPUC's regulations, thus eliminating any further threat of the assessment of taxes and penalties against the shipper.

In a case involving rail car demurrage at an oil refinery, Mr. Herman successfully defended an oil company against a railroad's claim for $700,000 in demurrage charges and on countersuit recovered $300,000 in demurrage charges that the oil company had previously paid to the railroad.

In a so-called "double-charge" case, Mr. Herman successfully defended a shipper against a claim by an ocean carrier for freight charges that the shipper had paid to an ocean freight broker but which the ocean freight broker - since defunct - had failed to pay to the ocean carrier.

In a case in federal court in which a railroad sought over $1,000,000 in destination rail demurrage charges from a marine terminal operator (port) which Mr. Herman represented, Mr. Herman negotiated a settlement which reduced the port's financial exposure by nearly $800,000.

Representing a rail-car manufacturer and lessor, Mr. Herman negotiated settlement of an enforcement action brought against his client in federal district court by the Interstate Commerce Commission's Office of Compliance and Consumer Assistance penalties for non-payment of freight charges on fleet repositioning movements related to fleet scrapping analyses, and successfully defended the client against several related freight-charge collection actions by railroads.

Representing a receiver of tank-car liquid shipments, Mr. Herman defended the consignee against demurrage charges sought in federal court in California by a railroad and negotiated a settlement of the demurrage charges and an arrangement whereby the consignee obtained the right to lease and/or purchase existing railroad sidetracks and build a new sidetrack to minimize the risk of future demurrage.

Mr. Herman obtained through settlement in a state court action filed in Florida full recovery of loss-of-use damages (car lease charges) for covered hopper cars that were wrecked by a rail carrier in a derailment and then held an unreasonably long period for repairs by the carrier.