27 November 2007
CP Rail Wants Firm in Lawsuit to be Docked Pay
Bismarck North Dakota USA - Canadian Pacific Railway wants
a federal judge to dock the payment to a Minnesota company helping administer the settlement of a class action lawsuit stemming from a
deadly January 2002 derailment.
The railroad argues in court documents that Chanhassen-based Analytics Inc. did "shoddy work" in undercounting
the number of Minot residents who decided not to be a part of the settlement. Those who opted out of the class are free to file
individual lawsuits against the railroad.
"The mis-administration of the... class settlement has led to unnecessary costs and expenses to the railroad,"
Canadian Pacific said in asking U.S. District Judge Dan Hovland to reduce the payment to Analytics by $50,000. The current payment of
more than $500,000 would be "grossly excessive compensation," the railroad said.
Canadian Pacific, in court documents, reported "substantial costs in trying to piece together the universe of claimants" not
covered by the settlement. Canadian Pacific attorney Tim Thornton said in an interview that the exact amount of those costs has not
been determined.
Steven Mueller, manager of claims operations for Analytics, said the company's fees total only $97,000, with about half the amount for
expenses. Mueller also said in an interview that Analytics did not charge for the cost of re-mailing notices to 18,587
Minot residents because of a printing error.
Mike Miller, one of the plaintiffs' attorneys, said the rest of the total payment amount cited by the railroad was for such other
lawsuit-related expenses as hiring expert witnesses, and did not go to Analytics.
The Minnesota company was hired to notify Minot residents after Hovland in July gave preliminary approval to a $7 million settlement of
the class action lawsuit stemming from the 18 Jan 2002, Canadian Pacific derailment and chemical spill on the edge of
Minot. One man died trying to escape the fumes from the farm chemical, and hundreds of other people were treated for burns and
breathing problems.
Hovland gave final approval to the settlement in October, though the Minot residents who are part of it will not receive a check from
the railroad for at least several more weeks.
Miller said that about 4,000 people submitted claims under the settlement by the Nov. 8 deadline. Analytics now will go through the
list, he said, to ensure it does not include people who are ineligible.
For example, the settlement excludes people who signed releases of liability for the railroad after 17 Feb 2002. The
30-day "cooling off" period is a matter of law.
Thornton said during a court hearing last summer that people who signed the releases received "several hundred dollars" from
the railroad.
People who are approved to be a part of the class are likely to get about $1,000 apiece. The plaintiffs' attorneys will get $2.9
million of the settlement to cover their fees and expenses. The rest will be shared equally by the class members, and Miller said he
expects the final number of claimants to remain "around 4,000, maybe a little less."
Thornton said that if Hovland decides to reduce the payment to Analytics by $50,000, Canadian Pacific would like to see that amount
taken off the top of the settlement total.
"We think we should be compensated for their screw-up," he said.
Miller said the money should go back into the settlement.
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