Am. Premier Underwriters v. Nat’l R.R. Passenger Corp.

APU holds 5.2 million shares of Amtrak common stock pursuant to the Rail Passenger Service Act, 84 Stat. 1327. The 1997 Amtrak Reform and Accountability Act, 49 U.S.C. 24304 mandated that “Amtrak shall, before October 1, 2002, redeem all common stock previously issued, for the fair market value.” In 2000, Amtrak proposed to redeem APU’s common stock for three cents per share. APU rejected Amtrak’s offer in November 2000. The statutory deadline passed without Amtrak making any further offer to redeem the shares. APU and Amtrak negotiated until January 2008, when Amtrak declared that the shares were worthless and that further negotiations would be futile. The parties never reached a settlement. In May 2008, APU sued Amtrak. The district court dismissed. The Sixth Circuit remanded one claim. On remand, the district court dismissed that claim as barred by the three-year statute of limitations. The Sixth Circuit affirmed, reasoning that there is no disputed question of fact regarding the dates of the three key events: Amtrak valued APU’s shares at three cents each in 2000; the deadline for redeeming the shares lapsed in 2002; and Amtrak terminated negotiations in 2008. The court rejected an argument that the limitations period began to run in 2008. View "Am. Premier Underwriters v. Nat'l R.R. Passenger Corp." on Justia Law