Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 28937
THIRD DIVISION Docket No. MW-28268
91-3-88-3-36
The Third Division consisted of the regular members and in
addition Referee Gil Vernon when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(CSX Transportation, Inc. (formerly The Chesapeake
( and Ohio Railway Company)
STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:
(1) The Carrier violated the Agreement when, without notifying the
General Chairman in advance as contemplated by the October 24, 1957 Letter of
Agreement, it assigned or otherwise permitted outside forces to raise the boat
slip at Ludington, Michigan beginning November 20, 1986 [System File C-TC3342/12-APPE(87-159)].
(2) As a consequence of the aforesaid violation, furloughed B&B
Carpenters J. C. Woods, D. Swanson and D. Nowak shall each be allowed one
hundred twenty (120) hours of pay at the carpenter's rate and they shall each
be credited with an additional fifteen (15) days for vacation qualifying
purposes."
FINDINGS:
The Third Division of the Adjustment Board, upon the whole record
and all the evidence, finds that:
The carrier or carriers and the employe or employes involved in this
dispute are respectively carrier and employes within the meaning of the
Railway Labor Act as approved June 21, 1934.
This Division of the Adjustment Board has jurisdiction over the
dispute involved herein.
Parties to said dispute waived right of appearance at hearing
thereon.
The essential background facts are not in dispute. Some three years
prior to the time this dipsute arose, Carrier owned and operated a ferry service which transported a
points on the Wisconsin side of Lake Michigan. In July 1983, Carrier entered
into a lease/sale Agreement with a consortium of three corporations unrelated
to Carrier. The Agreement provided for outright sale of Carrier's three ferry
boats and a six year lease, with an option to purchase, for the ferry service
Form 1 Award No. 28937
Page 2 Docket No. MW-28268
91-3-88-3-36
and use of certain docking facilities and appurtenant trackage. The provisions of the lease/sale
dispute.
By November 1986 the lease/sale arrangement had been operative for
more than three years. During this time, however, the water level in Lake
Michigan had been gradually rising due to natural processes. Continued
operation of the ferry service required that the "apron hinge" of the docking facility be raised to
the appuntenant trackage also had to be raised. This Claim deals with the
apron hinge work. A companion Claim deals with the raising-of the track.
The Organization position is that the Carrier remained responsible
under the lease to maintain Boat Slip No. 2 and appurtenant trackage in a serviceable condition exce
that severely damage or destroy the facilities. Since tha·e was no such damage or destruction
Carrier's position is that its obligation under the lease was limited
to repairs caused by fair wear and tear and its own negligence. The rising
water level does not fit under either criteria. The lease obligated the ferry
operator to make the hinge repair, and the ferry operator did so. This was
not work by or for the benefit of the railroad. Moreover, the work was not
under Carrier's control and the contract was between the ferry operator and
the contractor. The pertinent provisions of the lease stated:
"C60, .'or the six (6) Year Period, will maintain in serviceable condition and allow M-WT Co.
exclusive use of Slip
No.
2 and appurtenant
tracks and apron, auto ramp and passenger platform and gangplank (hereinafter Slip No. 2) for
this AGREEMENT's purposes, and CSO will provide
docking space for the car ferries at Slip Nos.
2-1/2 and 3-1/2, ~vided C60 only shall make
repairs to Slip No. ' and doccing space necessitated by fair wear and tear or its own neglige
Sip No.
2 or the docking spaces nor shall C60 be
responsible for repairs to Slip No. 2 or docking
facilities or for providing docking space in the
event an Act of God, Force Majeure or unforeseen
event not caused by C50 destroys or severely
damages Slip
No.
2 or docking spaces."
(Underlining supplied by the Board)
Form 1 Award No. 28937
Page 3 Docket No. MW-28268
91-3-88-3-36
Previous Awards of this Board form the well-established principle
that Carrier cannot be responsible for repairs and construction on property it
leases to other parties where, as here, the work is for the ultimate benefit
of others, is made necessary by the impact of the operations of others on Carrier's property and the
As such, no notice was required.
A W A R D
Claim denied.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J a -Executive Secretary
Dated at Chicago, Illinois, this 29th day of August 1991.