Indian River County Files Another Lawsuit Against Virgin Trains USA

Virgin Trains USA, formerly known as Brightline, has been gearing up for months to construct a $2.1 billion passenger train route between Orlando-to-West Palm Beach. It has already faced opposition due to safety concerns associated with high-speed rail lines, and is now facing another hurdle as the time for construction to begin comes closer: a new lawsuit filed by Indian River County on Jan. 16.

Indian River County has spent approximately $235 thousand each year to maintain railroad crossings since a 2011 agreement with the Florida East Coast Railway. Now, Virgin Trains USA and Florida East Coast executives expect Indian River taxpayers to pay for the new railroad’s installation and maintenance, despite the fact that the county does not have an agreement with Virgin Trains USA. The new lawsuit filed by Indian River alleges that Virgin Trains USA should not be considered a third-party beneficiary of the prior agreement, making the county not responsible for fees associated with the new railroad. The lawsuit involves 21 rail crossings along a rail line that will run 32 trains each day.  

On Jan. 14, two days prior to filing this newest lawsuit, Indian River County filed an appeal for a previously dismissed lawsuit. In the former lawsuit, the county said that the Department of Transportation did not properly allocate $1.15 billion of tax-free bonds to the railroad project. They also asserted that the public health, environmental impact, and safety reviews had been incomplete and faulty.  This lawsuit was dismissed by a federal court judge on Dec. 24, 2018, prompting the appeal.

Ultimately, Virgin USA executives hope to see the new rail line functional and ready for passengers in 2021. Before this can happen, however, they will have to come to an agreement that determines where the money that funds it comes from. In the meantime, it will be interesting to see how this lawsuit unfolds as time goes on.