A Judge in Federal Court has mandated that BNSF Railway shell out $400 million to the Swinomish Casino Tribe.
A federal judge has ordered BNSF Railway, a subsidiary of Warren Buffett's Berkshire Hathaway, to pay the Swinomish Indian Tribal Community over $394 million for repeatedly intruding upon the tribe's sovereign land with 100-car trains filled with crude oil.
Judge Robert Lasnik determined that BNSF intentionally breached the terms of the Swinomish Tribe's easement, which was established in 1991 as a result of lawsuits filed by the tribe over accusations of railroad trespassing on Native American land. The rail line runs parallel to the Swinomish Casino & Lodge.
The easement contract granted BNSF limited access to transport freight trains across the Swinomish reservation, located approximately 60 air miles north of downtown Seattle along Padilla Bay to the west of Whitney. As per the settlement terms, BNSF is allowed to use the tracks no more than twice a day, with each train consisting of a maximum of 25 cars.
The tribe initiated litigation against BNSF in 2015 upon noticing an increase in the railroad's usage of the tracks passing through Swinomish territory. Damages sought by the tribe escalated last year after two BNSF engines derailed on Swinomish land and released 3,100 gallons of diesel fuel into Padilla Bay.
$400M Awarded
Lasnik ruled in favor of the Swinomish Tribe, stating that BNSF began breaching the easement in 2012 when the company began transporting crude oil from the Bakken Formation in North Dakota to the HF Sinclair Puget Sound refinery in Skagit County. The refinery is situated less than a mile west of the Swinomish Reservation and 1.5 miles west of the Swinomish Casino & Lodge.
The Swinomish Casino offers 650 slot machines and various live dealer table games, while the lodge provides 98 guestrooms. The destination comprises seven restaurants and bars, an 18-hole golf course, an events center, and an RV park with 33 spaces featuring full hookups. The tribe is currently seeking a new sportsbook partner after Kindred Group announced in November its intention to depart the North American market.
Guests to the resort have been disturbed by the frequent loud trains passing along the BNSF tracks. Lasnik assessed the damages sustained by the tribe due to intrusions from 2012 to last year at $362 million. An additional $32 million was added to account for post-tax profits the tribe would have obtained from investing the capital, totaling damages of $394 million.
Steve Edwards, chairman of the Swinomish Indian Tribal Community, commented, "This large sum of money reflects the immense unjust profits that BNSF amassed by using the Tribe’s land day after day, week after week, year after year despite our objections. When there are such significant profits at stake, the only way to discourage future wrongdoing is to ensure that the trespasser relinquishes the money it earned through trespassing."
BNSF remained silent regarding the ruling, however, an appeal of the decision is anticipated.
Controversial Tracks
BNSF is the largest freight railroad in the US and is among the six Class I railroads in North America. The origins of BNSF can be traced back to 1849.
BNSF laid the railroad tracks crossing Swinomish territory in the late 19th century against the tribe's objections. The Swinomish Reservation was established in 1855 following the signing of the Treaty of Point Elliott between the US government, the Swinomish Tribe, and the Duwamish Tribe.
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