Taft serves as lead U.S. counsel for CPKC (the combination of two historic railways – Canadian Pacific and Kansas City Southern) on all U.S. litigation stemming from one of the most catastrophic train derailments in North American history. In July 2013, a train carrying crude oil that originated out of the Bakken oil formation in North Dakota derailed outside of Montreal, Quebec while en route to an oil refinery in New Brunswick, Canada. The derailment ignited the oil and the ensuing fire and explosions destroyed much of the town of Lac Megantic, Quebec; killed 47 people; and caused extensive environmental damage, property damage, and personal injury. At the time of the derailment, the train was under the custody and control of another railroad called the Montreal, Maine & Atlantic Railroad (MMA). MMA filed for bankruptcy shortly after the derailment. Numerous parties were sued in many lawsuits in various U.S. and Canadian venues.
In one of the long-running cases brought under the Carmack Amendment, the plaintiff’s initial claim for approximately $176 million in damages was reduced by the U.S. District Court in North Dakota through various motion practice down to $3.95 million, which amount was based on the value of the crude oil lost in the derailment. Judgment was entered in that amount against CPKC. Plaintiff appealed and CPKC cross-appealed to the Eighth Circuit Court of Appeals. On July 3, 2025, the Eighth Circuit overturned the $3.95 million judgment against CPKC, ruling that the lower court should have applied a provision from MMA’s bankruptcy plan concerning judgment reduction. The Eighth Circuit held this provision required that any judgment against CPKC be reduced to zero on account of MMA’s 100% fault for the derailment. The case was remanded to the District Court to enter a complete judgment reduction.
The case is Joe Whatley Jr. v. Canadian Pacific Railway Co. et al., — F. 4th —, 2025 WL 1831159 (8th Cir., July 3, 2025). CPKC is represented by Minneapolis partners Paul Hemming, Stacey Drentlaw, and Chris Brown, paralegal Jessie Duxbury-Cameron, and legal assistant Shelle Herstein.