Mitchell hired to negotiate for MM&A victims
A Chicago law firm representing victims of a deadly train crash last summer in Lac-Megantic, Quebec, has hired former U.S. Sen. George Mitchell as the lead negotiator and administrator of a plan submitted Wednesday, recommending how the assets of the bankrupt Montreal, Maine & Atlantic Railway should be divided among creditors.
Daniel Cohn, a Boston bankruptcy attorney working with the Chicago-based Meyers & Flowers, told the Portland Press Herald that its plan seeks to have personal injury claims heard in U.S. district courts, where claimants would have the highest priority, while property claims go through Quebec Superior Court. Cohn said Mitchell’s role would be to negotiate an agreement over how to divide the railroad’s $25 million insurance policy.
Robert Keach, the railroad’s bankruptcy trustee, told the paper he thinks the plan from Meyers & Flowers will be dismissed and that it is a tactical move related to a Friday hearing over a motion to move the bankruptcy case from Maine to Illinois. Cohn told the paper that Meyers & Flowers wants to move the case to Illinois because for wrongful death cases, Maine law sets a $400,000 cap on damages not easily assigned a monetary value.
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