Families of people killed in the crash of Continental Connection Flight 3407 are arguing in federal court that bankruptcy should not hold up their wrongful death lawsuits.

Flight 3407 went down en route to Buffalo in February 2009, killing 50 people. The families of many of those killed soon began filing wrongful death lawsuits for compensation of those lost. However, these lawsuits were put on hold when the company operating the flight, Pinnacle Airlines, filed for bankruptcy. This is because a bankruptcy ruling would likely limit payment of any debts, including damages from a wrongful death verdict.

However, lawyers for the plaintiffs have filed a motion in federal court to allow their lawsuit to go forward because the majority of damages from any verdict would likely be paid not by the company itself, but by its insurance company. A spokesman for Pinnacle Airlines seemed to support the position, saying, “If punitive damages were awarded to the plaintiffs in the Flight 3407 litigation, [Pinnacle subsidiary] Colgan believes payment would be covered by the liability insurance policy that was in place at the time of the accident.”

If the wrongful death lawsuits are allowed to go forward, it could help the families of victims to get compensation for their loss more quickly. It would also mean insurance providers responsible for the payments would not be able to shield themselves by encouraging policyholders to declare bankruptcy before proceedings begin.

If you have a lost a loved one in an accident or some other cause due to the negligence of another individual or corporation, you may be able to receive compensation for your loss. Please contact Robert W. Kerpsack, CO, LPA in Columbus, Ohio, for a free discussion of your legal rights and options.