Law firms in Fargo and Minneapolis say they have settled the majority of court cases arising from a deadly Canadian Pacific Railway derailment and chemical spill on the edge of Minot five years ago.
The settlements came just weeks before more hearings were scheduled in the legal battle that has dragged on for years.
Attorneys Mike Miller in Fargo and Gordon Rudd in Minneapolis said Wednesday that their firms have reached personal injury settlements for 1,000 clients, as well as a class action settlement for people affected by the derailment who have not filed individual lawsuits. That settlement must still be approved by a judge. It could involve thousands more people.
Details of the settlements were not released. A Minnesota state court jury last year awarded four derailment victims a total of nearly $1.86 million for their injuries, before other claims stalled in the courts.
Miller said other law firms have sued the Canadian Pacific over the derailment, but "this is going to take care of the vast majority of claims."
"Our clients are going to be very happy," he said. "I know I'm really satisfied with it."
Railroad spokesman Mark Seland said Canadian Pacific would not comment on details of the settlements because of the outstanding lawsuits and the fact that the class action settlement is not final.
"We're pleased that we're able to settle this large number this week," he said. "We'll continue with our attempts to deal with the remaining cases."
The early morning derailment Jan. 18, 2002, on the west edge of Minot released a cloud of anhydrous ammonia, a toxic farm fertilizer. One man, John Grabinger, died trying to escape and hundreds of other people were treated for burns and breathing problems.
The National Transportation Safety Board later ruled that inadequate track maintenance and inspections were to blame, a finding the railroad disputed.
Lawsuits were filed in both North Dakota and Minnesota after the wreck. Minneapolis is where the Calgary, Alberta-based railroad has its U.S. headquarters.
U.S. District Judge Daniel Hovland in Bismarck ruled in March last year that the Federal Railroad Safety Act protects the railroad from such lawsuits. Miller appealed the ruling to the 8th U.S. Circuit Court of Appeals, and a hearing had been scheduled for the middle of this month. It has now been postponed, Miller said, and it will be canceled when the settlements become final.
Seland would not comment on the railroad's reasons for settling. Miller said he thought the upcoming court hearing and pressure from Congress "played a role in them getting more realistic and finally coming to the table with some real offers."
"It was becoming crunch time," he said.
Seven members of Congress from North Dakota and Minnesota last fall joined the legal battle stemming from the derailment. North Dakota Sens. Kent Conrad and Byron Dorgan and Rep. Earl Pomeroy, and Minnesota Sens. Mark Dayton and Norm Coleman and Reps. Jim Oberstar and Jim Ramstad filed a legal brief supporting the 8th Circuit appeal by derailment victims.
The brief took issue with Hovland's ruling, saying Congress did not intend that railroads should be immune from injury lawsuits.
Hovland noted in his ruling that "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."
Rudd said Wednesday that he hoped the settlements would not end efforts in Congress to clarify the Federal Railroad Safety Act.
"Without such action, the railroads will have no incentive to maintain their rail," he said.
Canadian Pacific attorney Tim Thornton said at the time the legal brief was filed that the lawmakers were not in Congress in 1970 when the Federal Railroad Safety Act was passed and were not qualified to speak on the intent of what is known as "pre-emption."
Thornton did not immediately respond to telephone and e-mail messages Wednesday seeking comment on the settlements.
Hovland's ruling dismissed a class action lawsuit against the railroad. Under the class action settlement that has been reached, "a new action has to be commenced or that one has to rise from the dead," Miller said. It could be months before the details are resolved, he said.
The class action will not include people who have filed lawsuits or who have signed what Miller termed "valid" releases of liability for the railroad. People with valid claims also will have the option of opting out of the class and proceeding with their own lawsuits, Miller said.
A hearing also was scheduled in a couple of weeks in federal court in Minnesota on the issue of whether lawsuits filed against the railroad in that state should be handled in state or federal court. Miller said Wednesday that the status of that hearing was not known, since there are still some outstanding cases.
Posted in State-and-regional on Wednesday, May 2, 2007 7:00 pm Updated: 3:52 pm.
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