Genesee & Wyoming Inc. (GWR) said that it will pay $750,000 to the board of trustees of the Port of Galveston as part of a settlement of a lawsuit against the company and certain subsidiaries.
According to a filing with the Securities and Exchange Commission, the port filed a complaint in a county court in Texas in February related to a lease of port facilities by Genesee & Wyoming’s Galveston Railroad unit.
Galveston Railroad also entered into a new 20-year lease with the port. The parties reached the settlement agreement last Friday as a result of mediation discussions, the filing said.
James Owens, doing business as International Trade and Transport Ltd., who jointly filed the complaint against the company and its units, is not a party to the settlement agreement, the Aug. 16 SEC filing said. Owens’s claims are related to a rail-switching agreement with Galveston Railroad. Owens is seeking damages for breach of contract and commercial-tort claims and an undetermined amount for “punitive and similar damages,” the filing said. (Dow Jones)