Union Pacific to Pay $65 Million in Lawsuit

LAFAYETTE, La. - Union Pacific will pay $65 million to  settle a class-action lawsuit filed over a May 27, 2000 train derailment that forced the evacuation of more than 3,000 Eunice, La., residents, according to the Opelousas (La.) Daily World and other news sources.

A federal judge on Monday (09/06/04) formally approved the settlement, which was tentatively reached last May. The money, minus attorneys’ fees, will be split among the 12,273 people who have filed claims in the case. Taking into account the maximum allowable attorneys’ fees of 40 percent, each plaintiff could receive an average of $3,177.

The amount paid to each person will be determined through a  review process over the next two months, and plaintiffs should receive a  letter stating how much they are eligible for by the end of October, said Pat Juneau, who has been appointed by the court to oversee the settlement payout.

According to the National Transportation  Safety Board, the 113-car train derailed 34 cars northwest of the city, including some loaded with the hazardous materials toluene diisocyanate; acrylic acid; methyl chloride; molten phenol; dicyclopentadiene; pentanes, and hexanes.

The newspaper said environmental crews continue to monitor water and soil in the area near the derailment. Attorneys for the residents say the hazardous chemicals that leaked from the accident have been linked to no long-term health problems, but several residents initially complained of headaches, rashes, breathing trouble, and irritated eyes.

U.S. District Judge Richard Haik put off ruling on the amount of attorneys fees in the case but capped the figure at 40 percent of the total settlement. Attorney fees in class-action lawsuits are generally one-third of the total settlement.

Posted: 09/08/04