From Deseret News archives:
Railroad to pay $102 million after California wildfire
U.S. Attorney McGregor Scott said it is the U.S. Forest Service's largest ever damage recovery for a wildfire.
Union Pacific agreed to settle after a federal judge in Sacramento ruled against it in February, said Zoe Richmond, a spokeswoman for the railroad based in Omaha, Neb.
U.S. District Judge Frank C. Damrell Jr. decided the federal government could seek damages far beyond the lost market value of burned trees and the cost of fighting the fire.
The judge said the government could seek more than $13 million for "damage to wildlife habitat and public enjoyment of the forest," as much as $33 million to plant new trees and $122 million in lost timber.
"The forests' use for recreation and scenic enjoyment was also sorely impacted," Damrell wrote, summarizing the government's claim. "Much of the devastated areas involved old growth forests, designated wilderness and trees that were hundreds of years old. The damage to the soil, according to plaintiff, may take hundreds of years to rebuild, if ever."
The government sought damages as high as $190 million, a figure the railroad disputed, according to court records.
Richmond said railroad employees thought they had extinguished sparks alongside the tracks. Union Pacific said it was likely that a passing train fanned them into flames.
"We feel our employees handled the situation as best they could. It was a rare and unfortunate set of circumstances that this fire became bigger than it should have," Richmond said. "We are very fortunate that we didn't have any injuries or any major damage (to homes)."
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