BC-ND-Deadly Derailment, 1st Ld-Writethru,0304

Judge won't dock firm's pay in derailment lawsuit

Eds: UPDATES with Mueller referring calls to attorneys

By BLAKE NICHOLSON

Associated Press Writer

BISMARCK, N.D. (AP) - A federal judge has refused to dock the pay of a firm helping administer the settlement of a class action lawsuit stemming from a deadly January 2002 derailment on the edge of Minot.

Canadian Pacific Railway had asked Judge Daniel Hovland to reduce the pay of Chanhassen, Minn.-based Analytics Inc. by $50,000. The railroad said it lost money as a result of "shoddy work" by the Minnesota firm, though it did not specify the amount of the loss.

Hovland said in his ruling Thursday that he could find no reason to reduce the administrative fees to Analytics.

Railroad attorney Tim Thornton did not immediately return a telephone call seeking comment. Steven Mueller, manager of claims operations for Analytics, referred a request for comment to attorneys.

Mike Miller, who represents Minot-area residents affected by the derailment, said the railroad's argument was frivolous.

"I am very happy it didn't take Judge Hovland long to dispose of it," he said.

Gordon Rudd, another attorney for the Minot residents, said Canadian Pacific's request "was just another effort by the railroad to avoid financial responsibility for the January 2002 disaster."

Analytics was hired to notify Minot residents after a $7 million settlement was reached in the class action lawsuit stemming from the Jan. 18, 2002, Canadian Pacific derailment and chemical spill. One man died trying to escape the fumes from anhydrous ammonia, a farm chemical, and hundreds of other people were treated for burns and breathing problems.

Mueller said earlier that the company's fees for the notification work totaled $97,000, with about half the amount for expenses.

Hovland gave final approval to the settlement in October. Analytics currently is going through a list of about 4,000 people who submitted claims under the settlement, to determine eligibility.