Edwards v. CSX Transportation, Inc., No. 19-1782 (4th Cir. 2020)Annotate this Case
Residents and businesses of Lumberton, North Carolina filed a putative class action alleging that CSX Transportation caused their property to be flooded during Hurricanes Matthew and Florence. The district court dismissed each claim as either insufficiently pleaded or preempted by federal law.
The Fourth Circuit concluded that dismissal of the breach of contract claim was premature because plaintiffs have plausibly alleged that the Tri-Party Agreement was intended to directly benefit the class of persons to which they belong—the residents and businesses of South and West Lumberton left vulnerable to flooding through the gap. However, the court's holding is limited to the Tri-Party Agreement. In this case, plaintiffs alleged the existence of a second, unnamed and undated agreement, but failed to produce it or to plead any of its essential terms. The court also concluded that plaintiffs' tort claims are preempted by the federal Interstate Commerce Commission Termination Act. Accordingly, the court affirmed in part, reversed in part, and remanded.