In 1987, a leaky tank car carrying butadiene, a petroleum byproduct,
caught fire while standing on a railroad track near New Orleans. The
fire burned for 36 hours, and about 1000 residents were evacuated. The
National Transportation Safety Board
(NTSB) reported no serious injuries, and there was no significant
property damage. However, that did not prevent lawsuits from being
filed before the fire had even been doused. 8,047 people eventually
joined in a class-action suit seeking compensation for displacement,
mental anguish, and fear of future suffering that has so far not
materialized.
After eleven years of litigation, a jury decided that CSX
Transportation—owners of the track on which the tank car was
sitting—must pay a whopping $2.5 billion in damages. The NTSB had
already determined that CSX bore no responsibility for the accident,
which was caused by a faulty gasket, and liability for which was
admitted by the owner of the tank car.
The Louisiana Supreme Court set aside the jury's verdict pending
assessment of the plaintiff's claims.
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