Railroad settles fatal crash case for $37 .5M

After an eight-week trial and nearly two days of jury deliberations, Kansas City Southern Railway Co. agreed to a $37.5 million settlement in a Jackson County case over a train collision that killed a five-year-old girl and left her mother and three sisters severely injured.

Two weeks before the collision, the railroad began installing lights and gates at the crossing where the accident occurred in Arcadia, La. But the railroad took the gates down, turned off the light, and “inexplicably” placed black plastic bags over the lights instead of turning them on, said Grant L. Davis of Kansas City, lead attorney for the family. Since the silhouettes of the lights were still visible, the plaintiffs argued that the bags created an illusion that the dark lights were not flashing - an indication it was safe to cross.

The evidence of fault against KCS was overwhelming, Davis said. KCS should have installed lights and gates years before the wreck, and they absolutely should not have turned off the lights and gates after they had them up.

Before trial, KCS offered about $5 million to settle the case, Davis said. The railroad made offers of $18 million and $25 million during the trail, but the plaintiffs rejected the offers and moved on.

In closing arguments, Davis asked the jury for a range of damages for each plaintiff that totaled $263 million on the high end. He also planned to seek punitive damages in a second phase of the bifurcated trial.

KCS steadfastly maintained that it was a safe crossing. The railroad argued there was ample ability for the driver to hear the train and its whistle, but she simply failed to look around before driving into the train’s path.

“This was nothing more than an intersection collision case where the crew was operating well within the speed limit,” said James Yeretsky of Overland Park, Kan., attorney for Kansas City Southern. “The fact that it was an eight-week trial did not complicate the issue,” he said.

“The resolution of the case was welcomed by the railroad, but certainly without any consideration of fault,” Yeretsky said. “It was more of an attempt to determine what a Jackson County jury was going to do with the case, given the horrendous injuries and death.”

Hollis H. Hanover, a Kansas City trial attorney and mediator in practice for nearly 40 years, called the events leading up to this settlement “stunning and unprecedented.”

”The plaintiffs’ decision to turn down a $25 million settlement offer and proceed with the trial showed “an icy fearlessness” on the part of the attorneys and an unparalleled degree of confidence from their clients,” Hanover said.