A pallet company in Regina is taking Canadian Pacific Rail to court over a massive fire that happened nearly two years ago.

At least a dozen fire trucks were called to 701 Winnipeg Street N., where Bob's Discount Pallets was engulfed in flames shortly before 6 p.m. CST on August 21, 2012.

At the time, the deputy fire chief said the pallet warehouse caught on fire after several grass fires ignited along the railway lines.

Pallet company sues CP Rail

The statement of claim filed by Robert Inch, owner of Bob's Discount Pallets, argues the fire was started by a train passing on the nearby rail line.

"The train malfunctioned, causing sparks to be emitted from the train onto the railway and the surrounding area, including the premises, resulting in a fire," reads the statement of claim.

The document goes on to say that CP Rail was negligent in several instances. First, it says it CP Rail did not properly inspect and maintain the train and railway.

Among a handful of other claims, none of which have been proven in court, it also says that CP Rail failed to implement or adhere to a system that would detect if the system was overheating.

Finally, the statement of claim says the rail company did not warn the pallet company about the fire nor did it take steps to prevent the fire once it started.

CP Rail says it will not comment because the matter is in the legal system.

But in August 2012, Canadian Pacific Railway said it conducted a mechanical inspection and could not find evidence that one of its trains that went through Regina was connected to the fire.

Damages estimated to be at least $100,000

When he spoke to CBC shortly after the fire, Inch said the damages to his property could be at least $100,000.

An estimated 20,000 pallets were destroyed.

The damages Inch is suing for include: building damage repairs, debris removal and loss of stock, revenue, equipment and personal property.

The document was filed in the Court of Queen's Bench on Tuesday.