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Monday, May 18, 2015

Amtrak Could Pay No More Than $200 Million To Crash Victims

WASHINGTON (AP) — For the first time, Amtrak could face a $200 million payout to train crash victims — the limit set by Congress. But that may be too low to cover the costs of the eight lives lost and more than 200 people injured in last week’s derailment in Philadelphia.

That payout cap for a single passenger rail incident was part of a late effort in 1997 to pass a law that would rescue Amtrak from financial ruin and help it one day become independent.

Adjusted for inflation, which the law does not consider, that amount would be just under $300 million now. And Amtrak is still far from independent.

An Associated Press review of past cases found that Amtrak never before has been liable for a $200 million payout for a single passenger rail incident. The Philadelphia crash could be the first time the liability ceiling — designed specifically for Amtrak — would actually apply to the railroad.

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