Eversheds Sutherland, Herbert Smith Freehills and Stephenson Harwood have picked up roles as two rail companies challenge the Department for Transport (DfT) over contracts.

Arriva Rail, which is owned by German state-backed company Deutsche Bahn, and FTSE 250 travel operator Stagecoach are challenging the DfT over its decision to award a contract to rival rail company Abellio.

Earlier this month, the government disqualified Stagecoach from the bidding process for the east Midlands, southeastern and west coast rail franchises over rail staff pension issues. Arriva Rail was also disqualified by the DfT for being "non-compliant".

Stephenson Harwood is advising Arriva Rail, according to High Court documents filed on May 8. No legal adviser was listed for the DfT on those proceedings.

Stagecoach is being represented in its proceedings by longstanding adviser Herbert Smith Freehills, fielding a team led by disputes partner Nusrat Zar and corporate partner Ben Ward.

Eversheds Sutherland banking partner Richard Pitt is leading the team advising the DfT on the Stagecoach litigation.

Last year, Eversheds advised the DfT on the renationalisation of the East Coast Main Line, which will see the rail service brought back under government control until 2020.

For that deal, HSF took a role for Stagecoach and Virgin Rail, which had been the joint operators of the line since 2015.