Court ruling about subpoena issued in Luzerne County rail line litigation

A court ruling about a subpoena has been issued in the ongoing litigation over the Luzerne County rail line.

The county redevelopment authority owns the line, and the nonprofit Rail Corp. maintains a lease agreement with the rail operator, R.J. Corman Railroad Group.

Filed in July, the county council-authorized suit against the authority and Rail Corp. seeks court appointment of an oversight receiver or a declaration that $3.28 million the county loaned to the authority is immediately due.

The authority and Rail Corp. have argued there is no breach of contract to litigate because the authority has until October 2026 to repay the county.

Letters show the county wants the authority to turn over the railroad so it can be sold to recoup the $3.28 million. While the delinquent loan was stated as a reason, it appears to be part of a broader push to put the track into private ownership, with the hope that it would add passenger rail excursions while retaining and building commercial use.

As part of the county litigation, R.J. Corman, which is not a defendant, filed a motion to quash a county subpoena seeking information from the rail operator. County Court of Common Pleas Judge Lesa S. Gelb is presiding over the matter.

“Judge Gelb denied R.J. Corman’s motion to quash the subpoena to attend and testify. That means our subpoena must be honored,” Crocamo wrote in a Thursday afternoon email to council members.

Gelb had previously issued an order stipulating that information supplied by R.J. Corman for the subpoena is not subject to public disclosure and is covered by a protective order.

Her order denying quashing of the subpoena reinforces this stipulation, saying the county cannot disclose any information obtained from R.J. Corman in discovery to any third party, including the Reading & Northern Railroad or anyone seeking such information under the Right to Know Law.

Reading & Northern Railroad Chairman and CEO Andy M. Muller Jr. recently made an unsolicited offer to pay $10 million to buy the line, saying he will increase freight service and add passenger train excursions from Wilkes-Barre to Pittston. These are not commuter routes, but they would connect Wilkes-Barre to popular tourism train rides, such as existing excursions Reading & Northern operates from Pittston to historic Jim Thorpe.

Although initially resistant to non-public rail ownership, authority representatives have discussed plans to publicly seek proposals to obtain formal offers from any entities interested in purchasing or leasing rail holdings. The approximately 55-mile county rail line passes through the Pittston, Wilkes-Barre and Hanover Township areas.

In an Oct. 7 hearing on the subpoena challenge, R.J. Corman Attorney Joshua Bonn argued the subpoena was “issued in bad faith” and seeks commercial information from R.J. Corman that has nothing to do with whether the authority and Rail Corp. are in default of the county loan.

Representing the county, Attorney Roger Harrington said the subpoena focused on a “very narrow set of topics” concerning facts alleged in the complaint.

Bonn disagreed, asserting the county is seeking company strategic and business plans that are “beyond what is necessary and relevant” in the matter.

Harrington told the judge: “When you’re dealing with the operation of a railroad on public property, I think we’re entitled to the information.”

The authority board’s next regularly scheduled meeting is on Oct. 21. The authority is governed by five, council-appointed volunteers: Scott Linde, John Pekarovsky, Vincent Fayock, Stephen E. Phillips and Erik Laskosky.