Montreal

Canadian Pacific Railway challenges $431M Lac-Mégantic settlement

A Quebec superior court will begin hearing arguments today on the future of a proposed $431-million settlement offer to the victims of the Lac-Mégantic rail disaster.

Quebec superior court hears CP challenge of proposed settlement for victims of Lac-Mégantic rail disaster

Canadian Pacific says it's not responsible for paying into the Lac-Mégantic victims' settlement because the train in question (not pictured) was sold to MM&A. (Jeff McIntosh/The Canadian Press)

A Quebec superior court will begin hearing arguments today on the future of a proposed $431-million settlement offer to the victims of the Lac-Mégantic rail disaster.

A class-action suit against some 25 companies has been put on hold pending the outcome of the settlement offer.

But Canadian Pacific Rail has refused to participate in the settlement offer and is challenging its legitimacy.

CP says although the families of the 47 victims of the rail disaster deserve compensation, it says it wasn't responsible for the incident because it wasn't caused by a CP train.

CP handed off the train to Montreal Maine and Atlantic Railway, and a lawyer for the victims has said CP should have known MM&A was allegedly taking risks in transporting the crude oil that caught fire when the train derailed.

If CP is successful in its challenge, the families and creditors caught up in the disaster might have to go through years of expensive litigation before seeing any money. 

The Lac-Mégantic rail disaster killed 47 people after a tanker train carrying crude oil derailed and exploded in the centre of town.

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