Well, it looks like you guys are correct. I researched the matter of driver compliance at railroad crossings in the New York State Vehicle and Traffic Law. Section 1170 lists several different situations in which a motorist is required to stop at the crossing. They include, activated crossing protection devices and the presence of a flagman too. AND anytime a train approaching is within 1500 ft, sounding its horn, or by reason of speed or nearness to the crossing is an immediate hazard. The law did not address the question of failure of the crossing protection equipment.
So if I'm reading the law right, it seems to mean that you legally have to stop any time a train is close enough to be a hazard. So I assume if the warning equipment failed and a car gets hit by the train, technically the driver might still have violated the law for not stopping when the train approached.
BUT, I have a hard time believing that the police would ticket a driver for going across the tracks if the crossing protection failed to operate. And if an accident occurred, I seriously doubt that a railroad would have the audacity to claim legal right-of-way when its own signal equipment had failed to work properly, in effect causing the accident.
But, in this "Catch-22" world that we live in, maybe that's exactly what would happen..................