Illinois and Texas Cases Stemming from Lac-Megantic Derailment Transferred to Maine

The U.S. District Court for the District of Maine agreed last week to transfer Illinois and Texas cases related to the 2013 crude oil train derailment in Lac-Megantic, Quebec to the District of Maine pursuant to 28 U.S.C. 157(b)(5).  The transferred cases include personal injury tort and wrongful death cases pending in the U.S. District Court for the Northern District of Illinois and two putative class actions pending in the U.S. District Court for the Northern District of Texas.  The remaining railroad involved in the cases maintains that a Canadian venue is more appropriate for the cases.

Under 28 U.S.C. 157(b)(5), “The district court shall order that personal injury tort and wrongful death claims shall be tried in the district court in which the bankruptcy case is pending, or in the district court in the district in which the claim arose, as determined by the district court in which the bankruptcy case is pending.”  The bankruptcy proceeding of the railroad operating the train at the time of its derailment is taking place in the District of Maine.  The District of Maine determined that the Illinois and Texas cases have an effect on the bankruptcy estate, would be more convenient for witnesses in Maine given it is closer to the site of the incident, and that even though property damage claims could not properly be transferred (which were also brought in the Texas cases), that the Texas plaintiffs could file an amended complaint to eliminate those claims.

The case is before Judge Levy and is numbered 1:15-mc-355 and 1:15-mc-356.