Facts

On June 20, 2003, 31 Union Pacific Railroad Company freight cars derailed, crashed into a residential neighborhood, and destroyed the plaintiffs' homes, causing them personal injury. The plaintiffs, Luis, Carmen, Luis Jr., Liliana, and Liza Vasquez, and Steve Velasquez sued Union Pacific for negligence, intentional infliction of emotional distress, negligent infliction of emotional distress, trespass, unfair business practices, and disgorgement. The plaintiffs' actions for unfair business practices and disgorgement were dismissed by a Motion for Summary Adjudication prior to trial.

PLAINTIFFS CONTENTIONS:
The plaintiffs contended that as a train entered the Union Pacific rail yard in Montclair, a conductor for the yard switching crew instructed the inbound train crew to proceed to the end of the yard, disconnect the locomotives, and disregard setting the hand brakes as the yard crew was taking responsibility for the cars. The yard train crew began releasing air brakes, but per the conductor's instructions did not set the hand brakes, in violation of Union Pacific's safety procedures. Thirty-one loaded freight cars, without locomotives, began rolling downhill and reached speeds of 90 mph as they approached Los Angeles. The plaintiffs alleged that Union Pacific officials decided to derail the runaway freight cars before they entered its East Los Angeles yard. They contended that the defendant attempted to derail the freight cars at the end of a track used for switching. When the dispatcher electronically switched the freight cars and lined them to the chosen track, some of the freight cars derailed and crashed into an adjacent neighborhood, where the plaintiffs' homes were located. Two of the plaintiffs were in the home at the time of the derailment. DEFENDANT

The plaintiffs contended that as a train entered the Union Pacific rail yard in Montclair, a conductor for the yard switching crew instructed the inbound train crew to proceed to the end of the yard, disconnect the locomotives, and disregard setting the hand brakes as the yard crew was taking responsibility for the cars. The yard train crew began releasing air brakes, but per the conductor's instructions did not set the hand brakes, in violation of Union Pacific's safety procedures. Thirty-one loaded freight cars, without locomotives, began rolling downhill and reached speeds of 90 mph as they approached Los Angeles. The plaintiffs alleged that Union Pacific officials decided to derail the runaway freight cars before they entered its East Los Angeles yard. They contended that the defendant attempted to derail the freight cars at the end of a track used for switching. When the dispatcher electronically switched the freight cars and lined them to the chosen track, some of the freight cars derailed and crashed into an adjacent neighborhood, where the plaintiffs' homes were located. Two of the plaintiffs were in the home at the time of the derailment. DEFENDANT CONTENTIONS:
The defendants admitted negligence, denied any intentional misconduct, and contended that they believed the railcars would derail away from the residences. The defendants also contended that the cars were derailed out of necessity. The defendants further contended that the plaintiffs failed to mitigate their damages.

Settlement Discussions

The defendant offered $800,000 at a private mediation, and later raised its offer to $950,000 at trial. The plaintiffs demanded $5 million with an indication of movement.

Damages

Real and personal property loss, wage loss, and psychological injuries.

Result

The jury awarded the plaintiffs $467,138 in economic damages and $1,835,000 in non-economic damages, for a total award of $2,302,138. The Court granted non-suit as to the causes of action alleging intentional conduct and the punitive damages claims.

Other Information

Motions for New Trial are pending.

Deliberation

four days

Length

four weeks