• 29
  • July
    2011

In 2008, a commuter train crash in Los Angeles County killed 25 people and injured another 100 passengers when a passenger train collided head-on with a freight train. Investigators determined that the engineer on the passenger train had been texting moments before the accident, and failed to stop at a traffic signal.

Following the accident, Veolia Environment, who is a contract service operating the commuter rail service, agreed to pay a $200 million settlement to survivors and the families of the deceased. The $200 million is the most the train operator has to pay under federal law, which places a liability cap for damages in passenger train accidents.

Earlier this month, a California judge who was trying to determine how to divide the federally-capped $200 million award determined that it is not nearly enough to cover the requests he received. Compensation requests from victims of the public transportation accident are adding up to $320 to $350 million. In his ruling, the judge noted that if each case were to be tried separately, the potential verdicts would be over $300 million.

For many of those injured in the train accident, notably those in the first passenger car, medical bills have exceeded $1 million each, and it is believed that future medical bills could be just as steep for some of the survivors. Concerned that the settlement will not leave adequate funds for passengers injured in the second and third passenger cars, the judge has asked a congressional delegation to request that Veolia voluntarily increase the settlement amount.

In asking for a voluntary increase, the congressional delegation pointed to gas giant BP's actions with the Gulf of Mexico oil rig explosion: British Petroleum provided additional funding to victims, despite the federal cap.

But Veolia Environment was unmoved by the request and has declined to voluntarily increase the award. In denying the request, Veolia's CEO noted that others should also be held accountable for the accident -- implying that the delegation should go after Metrolink, the actual owner of the train.

As it stands now, many of the injured passengers will receive considerably less than their projected costs of future medical care. It is unknown whether the delegation will approach Metrolink and ask for additional funds.

Related Resource: Contractor Will Not Increase Fund for LA Train Crash Victims