Lac-Mégantic rail disaster (Quebec)
- 47 people died.Killed in the explosion on 6 July 2013.
A runaway train carrying crude oil exploded in the centre of Lac-Mégantic, Quebec, in July 2013, killing 47 people. The railway went bankrupt, about 25 parties funded a settlement of roughly C$440–460 million, and Canadian Pacific, which did not contribute, was not found liable by the Quebec courts.
Cleanup above C$200 million as reported by AP; Montreal, Maine & Atlantic's policy was capped at C$25 million.
Status As of May 2026: Quebec's claim against Canadian Pacific failed after the Supreme Court of Canada refused leave to appeal on 14 May 2026.
- Canadian Pacific — Paid nothing into the settlement fund; Quebec's claim against it failed through to the Supreme Court of Canada's refusal of leave in May 2026. Canadian Pacific via U.S. SEC EDGAR
- Contributors to the settlement fund — About 25 parties, including the federal government (C$75 million, without admitting liability), insurers and Burkhardt.
- Lac-Mégantic and its residents — 47 people died; cleanup alone cost more than C$200 million.
What happened
On 6 July 2013 a train carrying 72 tank cars of crude oil slid down a slope at night and exploded in the centre of Lac-Mégantic, Quebec. 47 people died. The train was run by Montreal, Maine & Atlantic Railway (MMA) and was driven by a single engineer.
MMA had received permission to run trains with a single engineer in May 2012. According to the research record, Transport Canada's own Montreal office and the union had opposed the change, and the company did not release its risk assessment, citing commercial secrecy. The accident investigation board listed 18 causes; the single-engineer decision was not among them.
Three MMA employees — the engineer Tom Harding, the traffic controller Richard Labrie and the operations manager Jean Demaître — were tried on charges of negligence causing death. In January 2018 a jury acquitted all three. Residents of the town said the wrong people had been tried. MMA's chairman, Edward Burkhardt, was never charged; he has said he lost his investment in the bankruptcy, and he settled in the civil case.
MMA's insurance policy was capped at C$25 million and covered property, injury and cleanup, according to AP and the Bangor Daily News. Cleanup alone cost more than C$200 million, AP reported. MMA filed for bankruptcy in Canada and the United States. About 25 parties, including the federal government, which paid C$75 million without admitting liability, funded a settlement of about C$440–460 million; the bankruptcy plans distributed about C$440 million.
Canadian Pacific (CP), the company that delivered the oil, was the only targeted company that refused to contribute. Quebec sued CP, claiming C$409 million, later reduced to C$315 million. In December 2022 the Quebec Superior Court found that CP's conduct was not the “direct, immediate and logical cause” and placed the fault on the engineer and MMA. The Quebec Court of Appeal upheld the ruling on 26 February 2025, and the Supreme Court of Canada refused leave to appeal on 14 May 2026. CP paid nothing.
- 2012May: MMA obtains permission for single-engineer operation; Transport Canada's Montreal office and the union had opposed it
- 20136 July: train of 72 crude-oil tank cars slides down a slope at night and explodes in the town centre; 47 dead
- 2018January: jury acquits the engineer, the traffic controller and the operations manager
- 2022December: Quebec Superior Court finds CP's conduct was not the direct, immediate and logical cause
- 202526 February: Quebec Court of Appeal upholds the ruling
- 202614 May: Supreme Court of Canada refuses leave to appeal
What was said
“direct, immediate and logical cause”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Claimed C$409 million from CP, later reduced to C$315 million.
Canadian Pacific via U.S. SEC EDGARFound CP's conduct was not the direct, immediate and logical cause and placed the fault on the engineer and MMA.
The Court of Appeal upheld the ruling on 26 February 2025; the Supreme Court refused leave on 14 May 2026.
Was the only targeted company that refused to contribute to the settlement fund.
Canadian Pacific via U.S. SEC EDGARAcquitted the engineer, the traffic controller and the operations manager of negligence causing death.
Courthouse NewsThe wrong people were tried.
Was never charged; said he lost his investment in the bankruptcy and settled in the civil case.
Approved single-engineer operation in May 2012.
Opposed the change.
Did not release its risk assessment, citing commercial secrecy.
Listed 18 causes; the single-engineer decision was not among them.
How it looked
Shown
- Did not release its single-engineer risk assessment, citing commercial secrecy.Montreal, Maine & Atlantic Railway
- Said he lost his investment in the bankruptcy.Edward Burkhardt, MMA chairman
Recorded
- A train of 72 tank cars of crude oil slid down a slope at night and exploded in the centre of Lac-Mégantic; 47 people died.
- Single-engineer operation was approved in May 2012; Transport Canada's Montreal office and the union had opposed it. The investigation board listed 18 causes; the single-engineer decision was not on the list.
- Jury acquitted the engineer, the traffic controller and the operations manager in January 2018; the MMA chairman was not charged.
- MMA's policy was capped at C$25 million; cleanup alone cost more than C$200 million (AP).
- The bankruptcy plans distributed about C$440 million. CP was the only targeted company that refused to contribute.
- Quebec claimed C$409 million from CP, later reduced to C$315 million.
- Eight subrogated insurers claimed about C$14 million from CP.
- Quebec Superior Court (December 2022), Quebec Court of Appeal (February 2025) and Supreme Court of Canada (leave refused 14 May 2026): Quebec's claim against CP failed.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- Canadian Pacific (2013–2026): Refused to contribute to the settlement fund; the courts found its conduct was not the direct, immediate and logical cause. · Canadian Pacific via U.S. SEC EDGAR
- Edward Burkhardt (MMA chairman, never charged) (Date not in record): Said he lost his investment in the bankruptcy; he settled in the civil case.
- Government of Canada (Date not in record): Paid C$75 million into the settlement fund without admitting liability.
- Montreal, Maine & Atlantic Railway (Date not in record): Filed for bankruptcy in Canada and the United States.
In court and with insurers
Lawsuits and rulings
- 2018-01Defendant wonCriminal trial of three MMA employees over the deaths at Lac-MéganticQuebec criminal court (jury) · Criminal · Prosecution → Tom Harding (engineer), Richard Labrie (traffic controller), Jean Demaître (operations manager)
The three were tried for negligence causing death. A jury acquitted all three in January 2018. The MMA chairman was not charged. Courthouse News
- 2026-05-14Defendant wonCAD 315m Quebec's claim, reduced from C$409 million (million, per CP's annual report)Quebec's claim against Canadian PacificQuebec Superior Court; Quebec Court of Appeal; Supreme Court of Canada · Civil · Quebec → Canadian Pacific
In December 2022 the Superior Court found CP's conduct was not the “direct, immediate and logical cause”. The Court of Appeal ruled in February 2025 (26 February) and the Supreme Court of Canada refused leave on 14 May 2026. CP paid nothing.
- SettledCAD 440m About C$440 million distributed under the plans (million)MMA bankruptcy proceedings and settlement plansBankruptcy proceedings in Canada and the United States · Civil · Claimants in the MMA bankruptcy proceedings → Montreal, Maine & Atlantic Railway
MMA filed for bankruptcy in Canada and the United States. The plans distributed about C$440 million; the wider settlement fund was put at C$440–460 million from about 25 parties, including C$75 million from the federal government without admitting liability. Canadian Pacific via U.S. SEC EDGAR
- SettledCivil case against MMA's chairmanCivil court (not identified in the record) · Civil · Civil claimants (not named in the record) → Edward Burkhardt
Burkhardt was never criminally charged. He said he lost his investment in the bankruptcy and he settled in the civil case; the settlement terms were not in the record.
Insurers
- No policy foundCAD 25m Policy cap (million)XL Insurance Co Ltd → Montreal, Maine & Atlantic Railway
MMA's policy was capped at C$25 million and covered property, injury and cleanup (AP, Bangor Daily News). The insurer was named as XL Insurance Co Ltd; an Insurance Insider headline reported that XL would pay $25 million, with no currency or date given in the record.
- No policy foundCAD 14m About C$14 million claimed from CP (million)Eight subrogated insurers (not named) → Policyholders (not named)
Eight subrogated insurers claimed about C$14 million from CP. The outcome was not in the record. Canadian Pacific via U.S. SEC EDGAR
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Insurers
Accounts
Record
- Unclear Whether XL Insurance Co Ltd's payment under the C$25 million policy was made in full: the record holds a trade-press headline that XL would pay $25 million, with no currency or date given.
- None on record The volume of oil released was not taken from a primary source.
Did the harm stop?
A one-night event on 6 July 2013. The last recorded legal step was the Supreme Court of Canada's refusal of leave on 14 May 2026.
Who paid?
Those harmed, the Canadian federal government (C$75 million, without admitting liability) and the other contributors to the settlement fund. MMA's policy was capped at C$25 million and CP paid nothing.
Sources
Company or project
- Canadian Pacific Railway annual report on Form 10-K (note on Lac-Mégantic)Canadian Pacific via U.S. SEC EDGAR ·
Press and investigations
- Courthouse News report cited for the 2018 acquittalsCourthouse News ·
Connected cases
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- Canada narrowed federal environmental reviews in 2012 and again in 2025 Canada · 2012–2025
- Government of Canada (Government) — here: Contributed C$75 million to the settlement fund; there: Federal government; subject of the 2012 assessment law and Bill C-5
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