Just two weeks after Columbia Gas agreed to plead guilty to violating the federal Pipeline Safety Act, a class-action lawsuit filed by Morgan & Morgan law firm received final approval from a Massachusetts Superior Court state judge. The case was a Civil Action and was brought on behalf of the people and businesses impacted by the actions of Columbia Gas.
The complaint stated that Columbia Gas either knew or should have known the pipes were inadequate in design and improperly maintained, which could lead to such a disaster. The material the pipes were made of, cast iron and steel, were further known to be susceptible to tragic explosion.
The class suffered personal and real property damage, expenses from being displaced, lost wages, lost revenue for businesses, lowered property value, emotional distress, disruption, inconvenience, and the loss of use and enjoyment of property, as well as loss of goodwill.
The Columbia Gas settlements created a $143 million fund to distribute cash payments to the class members. The lump-sum payments varied depending on the level of disruption a class member suffered. The courts approved a formula that took into account the member's geographical location, household size, length of displacement, length of disruption of service, and what kind of property damage occurred if any. The sums ranged from $50 to $15,000 depending on the factors mentioned.