Montreal

Lac-Mégantic settlement fund payment contested

Roughly 10 per cent of those eligible to receive compensation following the 2013 rail disaster are contesting the amount of money they're getting for moral damages from the $460-million Lac-Mégantic victim and creditor settlement fund.

About 10 per cent of those issued damages payment not satisfied with amount

Part of the town was leveled, and 47 people died after a train carrying oil tankers derailed and exploded in Lac-Mégantic, Que. in 2013. (Sûreté du Québec/Canadian Press/Associated Press)

About 400 people are contesting the amount of money they're getting for moral damages from the $460-million Lac-Mégantic victim and creditor settlement fund.

The court-appointed monitor overseeing the distribution of funds said today roughly 10 per cent of the 4,200 people who received cheques were not happy with their portion.

Andrew Adessky says his firm, Richter, will begin responding to creditors within the next couple of weeks, adding that some of the challenges are valid and others are not.

Creditors received 50 per cent of their moral damage claims, with the remaining cash to be distributed at a later time.

Adessky said a total of about $50 million has been set aside for moral damages after a train carrying crude oil derailed in Lac-Mégantic, Que., in 2013, killing 47 people and destroying part of the downtown core.

Roughly $113 million has also been distributed to those who made wrongful death claims.

About $300 million is left in the settlement fund, which will be distributed to the provincial government, the town of Lac-Mégantic and other creditors who made economic and insurance-related claims.