Warren County has sued the company that formerly ran a railroad on the county-owned rail line for unpaid revenue, a lawsuit that also names the town of Corinth as a defendant.
The county filed suit in state Supreme Court last week, naming Saratoga & North Creek Railway; its parent company, Iowa Pacific Holdings of Chicago; and several subsidiaries of Iowa Pacific. It alleges the companies breached a contract with Warren County and seeks $110,287 in unpaid revenue and tax bills that the county claims the railway incurred in 2017-2018, before pulling the plug on its operation.
The rail company also contracted with the town of Corinth, which owns the stretch of rail lines south of Warren County’s rails.
The lawsuit also names the town of Corinth as a defendant, but Warren County Attorney Mary Kissane said the county is not seeking damages from the town. Corinth is considered a “necessary party” to the action, because of its contract with the railroad company. Warren County officials advised Corinth leaders of the litigation, but the town chose not to take part in the lawsuit as a plaintiff, she explained.