MONTREAL - Canadian National Railway (TSX:CNR) has agreed to pay an Illinois family more than US$36 million to settle two negligence lawsuits filed after a fiery 2009 derailment led to a woman's death.
Zoila Tellez, 44, died after a train containing 7.6 million litres of ethanol derailed at a washout and caused a massive explosion in which flames engulfed their vehicle at a crossing.
Her husband, Jose, and the couple's 19-year-old pregnant daughter, Adriana, escaped, but both were injured in the June 2009 incident. Adriana's daughter was born prematurely after the incident and died.
The lawsuit by Jose and Zoila's estate was settled for US$22.5 million, while a separate lawsuit by the daughter was settled for US$13.75 million.
"We hope the settlement and verdict send a message to the railroads that what happened to our beloved Zoila, Jose and Adriana could have and should have been avoided," the family said in a statement.
Besides her husband, Zoila is survived by three daughters aged 11 to 19 years.
"We are thankful that the legal process is over but are still scarred and devastated by the tragedy," the statement said.
The settlements were announced Tuesday after being approved by a county district court judge.
CN said no amount of money can replace the family's losses.
"The Tellez family has endured a terrible tragedy and CN wishes to express again its sincerest regrets and deepest sympathies to the entire Tellez family," Patrick Waldron, U.S. manager of public affairs, said in a statement.
The family was waiting at a crossing when a CN train travelling to Chicago with 114 cars, including 74 tankers filled with ethanol derailed.
The lawsuits alleged that Canada's largest railway was negligent in the operation, maintenance and supervision of the train and track.
About 20 minutes before the incident, the local county 911 emergency centre phoned CN's Montreal headquarters to indicate that a portion of the track had been washed out, according to court documents.
Also named in the lawsuits were CN subsidiaries Illinois Central Railroad Co. and Chicago, Central & Pacific Railroad Co.
Lawyers for the family said pre-trial documents and witnesses indicated the train's engineer noticed water conditions on the track but nonetheless sped up the train.
"This was a tragedy that did not have to occur. There were a series of missteps by the railroad that culminated with this train going over a washout," said Robert Bingle, a lawyer with the personal injury firm Corboy & Demetrio.
Fellow lawyer Philip Corboy Jr. added that railways that carry hazardous cargo that travel through crowded residential areas need to be extra cautious about any dangers ahead.
"The railroads dropped the ball in this instance and a solid, loving family was literally — and figuratively — blown up," he said.
"I hope by this settlement the CNR and other like-sized railroads treat their communications systems with the utmost of importance."
The derailment remains under investigation by the U.S. National Transportation Safety Board.
On the Toronto Stock Exchange, CN's shares gained 14 cents to C$74.79 in afternoon trading.
© The Canadian Press, 2011