HSBC seeks damages over Hatfield

HSBC is suing Network Rail in a £6m negligence claim for damage to the train involved in the fatal Hatfield rail crash.

The bank's rail leasing business, which ultimately owned the rolling stock and engine, is accusing the operator formerly known as Railtrack of failing in its 'reasonable duty of care for the safety of persons and property (including railway rolling stock) lawfully using the railway network'.

HSBC is one of the three biggest owners of railway rolling stock. Its High Court claim began last week with a preliminary hearing to agree 'case management', according to one source involved in the dispute.

HSBC Rail (UK) wants the operator to pay £5.24m to cover the cost of writing off two coaches and repairing the engine and seven other coaches involved in the crash four years ago. Network Rail is resisting the claim. Interest on the damages sought totals almost £750,000 and is accumulating at £754 a day.

The lawsuit, compiled by Bristol lawyers Burges Salmon blames the rail operator for the 'derailment and its devastating consequences' after a fault known as gauge corner cracking appeared on a length of track called the Welham Curve.

The case is likely to cast new light on the relationship between the rail operator and private engineering firms. Balfour Beatty was in charge of rail maintenance and inspecting the track at Hatfield at the time of the crash.

Four people were killed and about 30 injured on 17 October 2000 when the 12.10pm GNER train from Kings Cross to Leeds came off the rails near Hatfield.

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HSBC's multi-million pound claim against Network Rail will not help the image of Britain's big three rolling stock companies.

Angel trains, owned by Royal Bank of Scotland, Porterbrook Leasing, part of Abbey National, and HSBC Rail ended up with nearly all Britain's train fleet after the privatisation of British Rail.

Together they make profits of about £170m a year on £1bn of revenues from leasing trains to Governmentsubsidised train operators.

James Sherwood, president of GNER owner Sea Containers, claimed in April that the firms made 'grotesque' amounts from the rail industry, but the leasing firms insist margins are thin.

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