Freight rail giant CSX has appealed to the U.S. Supreme Court in a landmark case that could shape the future of antitrust law and its application to ongoing competitive practices. The Jacksonville-based company is seeking to revive a lawsuit against rival Norfolk Southern, accusing it of denying access to a crucial East Coast terminal, which has cost CSX hundreds of millions in lost profits.
In its petition filed on Monday, CSX challenges a ruling by the 4th U.S. Circuit Court of Appeals that dismissed the case, citing the expiration of the four-year statute of limitations for antitrust claims. CSX argues that the court erred in its judgment and that Norfolk Southern’s alleged overcharging for access to the Norfolk International Terminals (NIT) in Virginia continues to this day, making the statute of limitations inapplicable.
At the heart of CSX’s petition is a call for the Supreme Court to address the “continuing-violation doctrine” in antitrust law. This legal principle suggests that ongoing harm caused by an illegal practice can extend the timeline for bringing a lawsuit. CSX contends that clarity on this issue is necessary to prevent “wasteful litigation,” confusion over lawsuit deadlines, and inconsistent rulings in future cases.
CSX’s legal team argues that the overcharge by Norfolk Southern is not a one-time violation, but an ongoing practice that causes daily harm to CSX and its customers. The company asserts that the railroad giant’s actions have effectively restricted its access to profitable contracts with major ocean shippers, further exacerbating its losses.
The Norfolk terminal plays a vital role in East Coast freight operations, handling large volumes of cargo from international container ships. Norfolk Southern owns the tracks at the terminal, but CSX, which operates its own rail network, must pay for access to the facility. CSX’s lawsuit claims that Norfolk Southern, in collusion with the Norfolk & Portsmouth Belt Line Railroad, has set exorbitant fees for access, significantly hurting CSX’s business and competitive position in the region.
The 4th Circuit Court’s August decision upheld a lower court’s dismissal, ruling that the alleged violations did not cause new harm within the applicable limitations period. However, CSX contends that this ruling allows Norfolk Southern to avoid competition and maintain inflated prices, effectively creating a monopoly-like advantage at the terminal.
“Antitrust violations should remain actionable when they continue to inflict harm over time,” CSX argued in its petition. The company believes the ruling effectively grants Norfolk Southern immunity from the antitrust laws meant to preserve fair competition and protect consumers. CSX’s petition now presents the U.S. Supreme Court with an opportunity to clarify the interpretation and application of antitrust law regarding ongoing violations.
The Supreme Court’s decision to take up the case would offer critical guidance on how courts should handle similar disputes in the future. The case, CSX Transportation v. Norfolk Southern Railway, is set to test the limits of antitrust enforcement in the freight rail industry, with implications for businesses across sectors dealing with monopolistic practices.
As the Supreme Court considers whether to review the case, CSX remains focused on securing competitive access to the Norfolk terminal for its customers. Norfolk Southern has declined to comment on the case. A decision on whether the Court will hear the appeal is expected in the coming months, with a ruling potentially reshaping the legal landscape for antitrust cases involving ongoing violations.
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