Reinsurer Moves to Dismiss Railroad's Amended Complaint in Mine Subsidence Case

SPRINGFIELD, Ill. — Illinois Mine Subsidence Insurance Fund (IMSIF) has moved to dismiss an amended complaint in which Union Pacific Railroad Co. seeks to bar it from continuing to seek reimbursement for mine subsidence claims, arguing that the preclusion theories asserted by the railroad do not apply.

In a Feb. 5 motion filed in the U.S. District Court for the Central District of Illinois, IMSIF says Union Pacific’s preclusion claims fail for lack of privity.

“The Fund pursues subsidence claims against Union Pacific by way of subrogation. As the reinsurer of the primary insurer who has paid for the property …