Stephen S. Laudone

STEPHEN LAUDONE represents rail clients on a variety of regulatory, litigation, and transactional matters. He focuses his practice primarily on helping railroads navigate the federal regulatory environment that governs the rail industry, advising clients on regulatory topics, including passenger rail, licensing requirements, and petitions and comments related to proposed Surface Transportation Board (STB) and the Federal Railroad Administration (FRA) rulemakings. His clients include Class I railroads, which he represents before federal courts and federal agencies, including the STB and the FRA. Stephen’s litigation practice focuses on railroad matters concerning federal preemption of state law, contractual disputes, and federal court review of agency action.

Stephen also advises railroads and rail industry investors in transactions involving the purchase or sale of railroads and rail assets, including regulatory approvals and compliance with federal licensing requirements. The full scope of Stephen’s practice delivers sophisticated, end-to-end counsel to the rail industry, combining deep knowledge of federal railroad law with a strategic understanding of the commercial imperatives that drive Class I carriers, short lines, shippers, investors, and lenders.

Stephen also regularly participates in pro bono work, including representation of incarcerated individuals seeking improved conditions or early release, providing assistance to veterans seeking compensation under federal law, and advising non-profit entities on matters of corporate governance.

Stephen’s recent experience includes representing:

• FTAI Infrastructure, Inc. in its US$1.05 billion strategic acquisition of Wheeling Corporation and its railroad subsidiaries, Wheeling & Lake Erie Railway Company andAkron Barberton Cluster Railway Company.
• A coalition of three railroads in Grand Trunk Corporation v. Surface Transportation Board, successfully challenging a final rule before the U.S. Court of Appeals for the Seventh Circuit; on July 8, 2025, the court vacated the rule, holding that the STB had exceeded its statutory authority by permitting forced reciprocal switching orders without a threshold finding of inadequate service.
• CSX Transportation, Inc. in an unprecedented 11-day regulatory hearing before the STB concerning Amtrak’s proposed introduction of passenger service between New Orleans and Mobile; resulted in a successful settlement that resolved a two-decades-long controversy over passenger service on the Gulf Coast and dismissal of the case in November 2024.
• Norfolk Southern Railway and the Association of American Railroads in a successful constitutional challenge to a Virginia statute permitting broadband companies to cross active rail lines without satisfying safety or economic requirements; orchestrated a multi-pronged litigation strategy across federal and state forums, culminating in a landmark May 2025 Virginia Supreme Court decision striking down the statute as unconstitutional for authorizing private condemnation of railroad property without a public use justification.
• Canadian National Railway in its acquisition of the Iowa Northern Railway and application for regulatory approval from the STB. The STB approved the transaction in a decision served January 14, 2025. Iowa Northern operates approximately 218 route miles in Iowa, which will be added to CN’s nearly 20,000-mile network in the United States and Canada.
• A railroad in Sixth Circuit appeal to vindicate the ICC Termination Act’s preemption of state-law property claims aimed at a railroad right-of-way.
• Fortress Transportation and Infrastructure Investors, LLC in their US$640 million acquisition of Transtar, LLC from United States Steel Corporation.
• Short line operator Pinsly Railroad Co. in its proposed acquisition of Hondo Railway, LLC, a short line railroad company in Hondo, Texas.
• Railroads in STB proceedings and state and federal court litigation involving preemption defenses under the ICC Termination Act and the Federal Rail Safety Act.
• Railroads on passenger rail issues, including preference, on-time performance, and contractual matters.