NJ Congressman Says Customers Should Be Able To Sue Amtrak

NEW JERSEY — When Amtrak riders buy a ticket, there’s an automatic clause that prevents them from suing if there’s a dispute. That policy covers a wide range of incidents, whether they’re a complaint over a ticket price or a wrongful death accusation, and it has seen its fair share of criticism since it rolled out two years ago.

But if a New Jersey congressman and two of his peers get their way, the company’s controversial “arbitration” clause will soon be a thing of the past.

On Wednesday, U.S. Rep. Donald Payne Jr. (NJ-10) introduced the Ending Passenger Rail Forced Arbitration Act alongside Reps. Conor Lamb (PA-17) and Marilyn Strickland (WA-10). If it becomes law, the federal bill would eliminate the dispute resolution pathway that passengers are forced to accept when they purchase an Amtrak ticket.

Whenever a passenger has a beef with Amtrak, instead of bringing their claims to court, they have to go before an arbitrator who makes a ruling – in Amtrak’s case, the American Arbitration Association. The policy also covers second-party tickets, such as those bought for a minor by a parent, and prohibits customers from joining class action suits.

Amtrak created the policy in 2019 after two high-profile crashes, a 2015 derailment in Philadelphia and a 2017 derailment in DuPont, Washington, resulted in multimillion-dollar settlements for the victims.

Other transportation companies, such as major airlines, are banned from using mandatory arbitration clauses in their dispute resolution. And it’s wrong in Amtrak’s case, too, Payne charged.

“This bill would ensure customers can pursue legal remedies in court and give them more options to resolve problems they experience with Amtrak travel,” said Payne, who serves as chairman of the Subcommittee on Railroads, Pipelines, and Hazardous Materials for the House Committee on Transportation and Infrastructure.

• See related article: $11 Fries At Newark Airport Are 'Price Gouging,' Congressman Says

AMTRAK: ‘MYTHS AND MISUNDERSTANDINGS’

On its website, Amtrak claims that arbitration is the fastest and best way for our customers to resolve legal disputes.

“We successfully resolve over 95 percent of customer complaints directly with our customers,” the company boasts, adding that arbitration is “typically quicker and more efficient” than relying on overburdened court systems.

Amtrak argues that there are several “myths and misunderstandings” about the arbitration process. They include:

GAG RULE – “Arbitration does not impose a ‘gag rule.’ You are free to discuss your claim with law enforcement authorities, the public, other consumers, and anyone else you deem appropriate.”

NEUTRALITY – “Arbitration is not controlled by Amtrak. A neutral professional arbitrator, mutually selected by the parties, makes all pertinent decisions about the case. Arbitrators are provided by the American Arbitration Association, a nonprofit organization and a recognized national leader in this field. Many of these arbitrators are experienced lawyers and former judges, and they are required to adhere to ethical rules.”

STACKED DECK – “Arbitration is not stacked against claimants. The arbitrator is neutral and selected by the parties.”

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