BISMARCK, N.D., May 5, 2005 (PRIMEZONE) -- The Chief Judge of the federal court in North Dakota has granted class certification to residents who suffered injuries or property damage from the release of anhydrous ammonia by a derailed Canadian Pacific (NYSE:CP) train on January 18, 2002, near Minot, N.D.
According to Judge Hovland's order, "It is clear from the record that issues concerning CPR's alleged negligence or fault can be established through common evidence. . . . The Court recognizes that even though important issues will need to be addressed separately, common issues of CPR's alleged negligence, the toxic nature of the anhydrous ammonia, and the injuries caused by exposure are issues at the heart of this litigation. The Plaintiffs have clearly established that they are a `group seeking to remedy a common legal grievance.'"
As a result of the Court's decision, everyone who was exposed to the toxic release and who did not sign a release after February 18, 2002, is part of the class. That date is significant, according to the Court, because a North Dakota law allows those hurt to void any release they may have signed within 30 days of an incident. Gordon Rudd, one of the attorneys for the class, stated, "We fought hard to assure the protections of this law, particularly because, after the derailment, Canadian Pacific engaged in a scheme to obtain full releases in exchange for a pittance. The railroad had stated very publicly that residents were just being reimbursed for incidental expenses while preserving their right to further compensation for injuries. Later Canadian Pacific claimed the releases relinquished all claims."
Just last month, the Federal Railroad Administration announced it was investigating Canadian Pacific for violating federal regulations in the shipping of hazardous materials in the U.S. The United Transportation Union had accused the railroad of failing to inform train crews of hazardous contents in train cars. While these claims are not part of the class action, Rudd says he's not surprised at the investigation: "The evidence we've seen that led to the Minot disaster shows Soo Line and Canadian Pacific's complete disregard for the safety of people living near their track."
A consolidated case against Soo Line and Canadian Pacific is also proceeding in Minneapolis on behalf of injured individuals. Soo Line, the Canadian Pacific subsidiary that maintains the track through Minot, is headquartered in Minneapolis. In June, a Hennepin County judge will hear arguments that a jury should be allowed to award punitive damages in the consolidated cases. The punitive damages would be based upon the allegations that Soo Line and Canadian Pacific knowingly allowed years of track decay to persist so that they could continue to move longer and heavier trains through North Dakota and Minnesota uninterrupted.
Critically, at the end of its investigation of the Minot derailment, the National Transportation Safety Board (NTSB) concluded that the derailment was due to a number of Canadian Pacific's failures, including its failure to maintain a temporary joint bar that had been left in place for 20 months on light-gauge replacement track. That joint bar ultimately cracked, throwing the train off the rails. The 2002 derailment in Minot was not the railroad's first residential disaster. In 1994, the railroad had allowed similar conditions to go unchecked before another train derailed just six miles away from Minot. In that derailment, a car carrying flammable materials exploded and severely burned a 16-year-old boy.