Rail crash victims asked to organize
The bankruptcy trustee for the Montreal, Maine & Atlantic Railway has asked attorneys representing the 47 victims killed in the railroad’s derailment and explosion last year to clarify how they will make decisions or approve a settlement.
The Portland Press Herald reported trustee Robert Keach has asked the bankruptcy judge in the case to exclude the victims’ lawyers and have their previous filings thrown out until they clarify how they would make decisions. In a January filing, attorneys for the victims in the case said they had organized an informal committee to represent their clients.
Keach has asked the court to reject a proposal from the victims’ attorneys that would give 75% of the railroad’s $25 million insurance policy to the families of those who died in the explosion and the rest to those in the town of Lac-Megantic, Quebec, whose property was damaged. The newspaper reported Keach objected in part because that method excludes others who suffered from the explosion. He previously said the final settlement, including funds for environmental cleanup at the site of the oil car crash, could be near $700 million after all claims are heard.
Separately, the top bidder for MM&A’s assets, Fortress Investment Group, has asked the federal Surface Transportation Board for permission to resume operations on the railroad as the Central Maine & Quebec Railway as soon as March 17.
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