Canadian Pacific Railway challenges $431M Lac-Mgantic settlement

A Quebec superior court will begin hearing arguments today on the future of a proposed $431-millionsettlement offer to the victims of the Lac-Mgantic rail disaster.

A class-action suit against some 25 companies has been put on hold pending the outcome of the settlement offer.

But Canadian Pacific Rail has refused to participate in the settlement offer and is challenging its legitimacy.

• CP Rail refuses to pay for Lac-Mgantic cleanup
• Lac-Mgantic families approve $435M compensation package

CP says although the families of the 47 victims of the rail disaster deserve compensation, it says it wasn't responsible for the incident because it wasn't caused bya CP train.

CP handed off the train to Montreal Maine and Atlantic Railway, and a lawyer for the victims has said CP should have known MM&A was allegedly taking risks in transporting the crude oil that caught fire when the train derailed.

If CP is successful in its challenge, the families and creditors caught up in the disaster might have to go through years of expensive litigation before seeing any money.