| WASHINGTON/TORONTO, June 9
WASHINGTON/TORONTO, June 9 Shippers wrongly
moved explosive gas as part of a crude oil delivery that
derailed and killed 47 people in a Canadian town last year,
lawyers seeking to represent the devastated town in a class
action lawsuit are expected to argue in a proceeding that starts
Several tank cars exploded with surprising force when the
cargo from North Dakota's Bakken energy patch jumped the tracks
and detonated in downtown Lac Megantic, Quebec, last July.
Since that deadly mishap, U.S. officials have warned that
Bakken fuel is more volatile than previously thought because of
the presence of dangerous gas and have encouraged shippers to
bleed off that gas before moving it on the rails.
But lawyers from the Toronto class action law firm Rochon
Genova LLP will argue that oil companies were alert to Bakken
fuel dangers well before the Lac Megantic tragedy, and failed to
handle the fuel safely on the tracks.
Shippers and others in the supply chain "simply ignored the
need to take any meaningful steps to properly test, warn, label
or classify the oil," according to documents filed last week.
Those allegations have not been tested in court.
Rochon Genova will on Monday argue in the Quebec Superior
Court that residents and others who suffered loss due to the
accident should treated as a single group of claimants in a
Although the discovery process has yet to formally begin,
police findings and industry paperwork already point to a
haphazard shipping process, the law firm said.
For at least eight months before the accident, oil train
cargo routinely arrived at the Irving Oil refinery labeled as
the least-dangerous class of flammable liquid, and near-empty
tankers returned to the field carrying a higher warning,
according to a Quebec police report.
A month before the Lac Megantic disaster, an Irving Oil
executive noted that fuel testing at the source "is almost
non-existent," according to a company Power Point presentation
seen by Reuters.
Irving Oil did not respond to a request for comment. Besides
the refinery, the plaintiffs are suing other companies that they
say handled the fuel, such as World Fuel Services Corp,
which arranged the delivery.
World Fuel Services has argued in court filings that the
rail disaster was chiefly a human error and nothing in the
labeling, or packaging could have changed the outcome.
"While petitioners desire to find a solvent entity - any
solvent entity - to compensate for their losses, their
allegations simply cannot logically support pinning that
liability on WFS," the firm's lawyers said in a filing.
Rochon Genova will also argue that officials at Transport
Canada, the federal transportation authority, should answer for
lax oversight before the accident. The arguments are expected to
last for about two weeks.
The regulator did not immediately respond to a request for
(Additional reporting by Sandra Maler in Washington, editing by
Ros Krasny and Nick Zieminski)