Minot Train Derailment
Settlement Update 10.10.07: On behalf of a class of Minot residents, Zimmerman Reed won approval of a $7 million settlement with Canadian Pacific Railway related to the railroad's January 2002 train derailment in Minot, North Dakota. The settlement provides significant compensation for many in the Minot community who were exposed to the chemical release and experienced short-term injuries or had to evacuate. Many who suffered more significant injuries sued individually. Click here to view the Order of Final Approval of Class Settlement.
The class settlement administrator may begin mailing settlement payments as early as the end of November 2007.
Click here if you would like to contact Zimmerman Reed with any questions regarding settlement, or call toll-free at 800.755.0098.
Background:
On January 18, 2002, Canadian Pacific Railway caused the largest release of anhydrous ammonia in U.S. History when its train derailed in Minot, N.D. After a thorough investigation, the National Transportation Safety Board concluded that CP’s ineffective training and maintenance procedures caused the derailment. Litigation has been pending in both state and federal court for nearly four years. The derailment was caused by a broken joint bar, which holds two pieces of rail together. The joint was considered “temporary,” meaning that it should have been in place for no more than 30-50 days. Instead, this “temporary” joint was in place for nearly 22 months.
In the Minnesota state court litigation, the railroad admitted liability for the derailment on the eve of trial last January. The cases proceeded to jury trial to determine whether the individuals' exposure to anhydrous ammonia caused the plaintiffs’ injuries, and if so, the amount of damages that should be awarded. On February 15, 2006, the jury ordered CP Railway to pay 4 individuals $1.86 million dollars for the injuries sustained. Thousands of cases still exist.
A second wave of cases is set for trial in Minnesota state court in May 2006. The first wave jury verdicts will likely be appealed to the Minnesota Court of Appeals.
The Federal case is a certified class action, which was recently dismissed – a result the Federal Judge called “Unfair.”
In the Federal case in North Dakota, the Court recently dismissed the entire class action based upon a technical legal argument called preemption. The State Court rejected the same arguments presented to the Federal Court.
U.S. District Judge Daniel Hovland cited the Federal Railroad Safety Act, which he concluded makes the railroad immune from legal action. Even the judge didn't think it was fair.
Judge Hovland said the federal legislation "closes every available door and remedy for injured parties." "As a result, the judicial system is left with a law that is inherently unfair to innocent bystanders and property owners who may be injured by the negligent actions of railroad companies,'' he wrote.
Fortunately, the legal battle is not over. The cases against the railroad filed in Minnesota are still going forward. Judge Hovland's decision can be appealed, and the dismissed cases can be refiled in Minnesota state court, where courts have correctly interpreted federal law and allowed claims against railroads to proceed.
