Bankruptcy Court Grants Full Summary Judgment to Canadian Pacific and Soo Line in Lac-Mégantic Litigation

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 the last of dozens of cases that have wound their way through the lower and appellate federal courts, on April 21, 2026, the U.S. Bankruptcy Court for the District of Maine granted summary judgment in favor of Canadian Pacific Railway Company and Soo Line Railroad Company in long-running litigation arising from the 2013 Lac-Mégantic crude oil train derailment. Relying on detailed findings by Quebec trial and appellate courts and on a subsequent Eighth Circuit decision under the Carmack Amendment, the court held that principles of claim and issue preclusion foreclosed relitigation of Canadian Pacific Railway Company and Soo Line Railroad Company's alleged negligence and entered judgment for those railroads on all remaining claims. The ruling confirms that those railroads bore no fault for the catastrophe.

The case is Keach v. Canadian Pac. Ry. Co. (Bankr. D. Me. Apr. 21, 2026). This was the final Lac-Mégantic case still pending in the United States. Dozens of earlier cases were dismissed on various Rule 12 and Rule 56 motion practice by a collection of federal district and appellate courts.

CPKC was represented by Minneapolis partners Paul Hemming, Stacey Drentlaw, and Chris Brown.

Hemming has deep knowledge of how railroads do business. He represents railroads in litigation involving derailments, Carmack claims, handling carrier agreements, short-line sales, rate disputes, haulage agreements, and trackage rights agreements.

Drentlaw focuses her practice on complex commercial, railroad, and construction litigation. She also provides regulatory compliance counseling to her rail industry clients.

Brown is experienced in securities, M&A, bankruptcy, antitrust, and tax controversy matters.