Facts

In 2000, a wildfire ravaged land located north of Sacramento. Approximately 52,000 acres belonging to the Plumas and Lassen national forests were consumed over the course of three weeks. Over 2,500 firefighters fought this fire and costs were estimated to be $22 million.

Five Union Pacific employees were accused of not following proper safety procedure when using power tools for track repair on Aug. 17, 2000. Specifically, the employees failed to use spark shields and did not rid the area of flammable material. While the exact cause and origin of the fire was never established, Union Pacific nonetheless accepted financial responsibility for the consequences of the fire as claimed by the United States Forest Service. The settlement followed a first impression ruling by the court regarding the scope and extent of potentially recoverable damages.

Result

Parties settled, with Union Pacific to pay $102 million to the U.S. Forest Service. The amount will cover the cost of firefighting, loss of timber, plus damage to the environment as well as recreational use.