How much could multi-million dollar payout from Valhalla crash verdict hurt the MTA?

Metro-North faces a judgment of hundreds of millions of dollars following a jury verdict Tuesday that found the railroad's negligence largely to blame for the deadliest accident in its history, a 2015 crash in Valhalla that killed five passengers and the driver whose SUV got stuck on the tracks.

The jury verdict in state Supreme Court in Westchester followed a seven-week civil trial that highlighted Metro-North’s alleged missteps ahead of the Feb. 3, 2015 crash of the northbound Harlem Line train.

With the liability issues resolved, a separate trial will decide how much the families of the dead and injured passengers, as well as the estate of SUV driver Ellen Brody, are due.

And, according to court papers filed in recent weeks, those claims could far exceed $200 million.

That cost could fall to an already burdened Metropolitan Transportation Authority, which took a financial hit just a month ago when a much-anticipated congestion pricing plan, meant to fill the MTA's coffers with toll revenue from Manhattan drivers, was scrapped by Gov. Kathy Hochul at the last minute.

While Metro-North has said it will appeal this verdict, the question remains: Will potential payouts related to this verdict deepen the MTA's fiscal troubles?

Metro-North trial verdict: Metro-North primarily responsible for fiery 2015 Valhalla crash that killed 6, jury finds

Crash deaths carry heavy economic, emotional losses for families

Two passengers killed in the first car — high achievers with their best earning years ahead — had the potential to earn more than $100 million each over the course of their careers, according to experts hired by the families.

Joseph Nadol, a 42-year-old financial analyst from Ossining, could have earned between $86 million and $120 million depending on when he retired, according to court papers filed by his estate’s attorneys last month.

Experts estimate Robert Dirks, a 36-year-old computational scientist from Chappaqua, could have earned between roughly $48 million and $108 million depending on which career track he chose to pursue.

“They’re superstars within their fields,” said Ben Rubinowitz, the attorney who argued the case for their estates.

Beyond the economic loss is the absence of a father in the lives of young children, Rubinowitz said. Nadol was a father of three and Dirks a father of two.

“It’s nothing but a world of hurt,” Rubinowitz said. “This is something that has really changed their lives around.”

Engineer: Engineer in Metro-North crash that killed 6: 'I have to relive this every day of my life'

Verdict: How responsible was Metro-North for deadly crash?

The six-person jury, split evenly between men and women, found Metro-North negligent for the decision by its former engineer, Steven Smalls, to sound the train’s horn rather than hit the brakes as soon as he spotted a black, shiny reflection ahead at the Commerce Street crossing.

Testimony at the trial revealed Smalls allowed the train’s speed to increase to 59 mph after the sighting.

And the jury agreed with attorneys for the dead and injured passengers that a third rail which pierced the train’s first car, killing the five passengers, was poorly designed and maintained.

The jury found Metro-North 71% liable for the accident and Brody, a mother of three from Edgemont, responsible for the rest.

Brody’s estate, represented by her husband Alan, is seeking compensation for their three daughters.

Decision: Final seconds of deadly Metro-North Valhalla crash raise questions about engineer's actions

In assessing the estate’s claims against the railroad, the jury found Metro-North responsible for 63% of the liability and Brody the remainder.

Smalls, who retired from Metro-North after the crash, declined to comment after the verdict was delivered Tuesday.

In 2019, he reached a $1 million settlement with Metro-North after filing a lawsuit over his injuries.

He said he chose to sound the horn instead of engaging the emergency brakes because he feared passengers could be hurt. Three seconds before the crash, he engaged the brakes.

The train crashed into Brody’s Mercedes SUV, which was pushed into the third rail, lifting it up and into the train’s first car, according to the families’ attorneys.

Attorney Philip Russotti, who represents Brody’s estate, told jurors Metro-North did not have proper signage alerting motorists they were approaching a crossing and had not analyzed its own data showing there was a safety issue at the crossing.

“Incredibly, nothing has changed in the nine years since the accident,” Russotti said.

Rail: On 4th anniversary of Valhalla Metro-North crash, third rail is focus of litigation

What does this mean for Metro-North's budget going forward?

Metro-North declined to speculate on what impact a payout could have on the railroad’s budget.

It’s likely that in the coming weeks, Metro-North’s attorneys will ask a judge to set aside the verdict.

“The MTA and Metro-North disagree with the jury’s verdict and intend to explore all available legal options including appeal,” Metro-North spokesman Aaron Donovan said. “It is therefore premature to speculate on what, if any, financial impact a future damages verdict may have on Metro-North operations.”

In the past, when questioned about legal settlements in other accidents, Donovan has said the railroad works with risk managers and commercial insurance carriers to minimize the budgetary impacts of legal costs. Donovan declined to comment on whether insurance will cover any payouts from the Valhalla crash.

After Tuesday’s verdict, Rubinowitz suggested a settlement is possible.

"We're always interested in a settlement, provided they come up with the appropriate number,” he said. “If they don't, there's no way in the world we would settle this case. We are waiting to hear from them."

A date for the second trial has not been set.

Congestion pricing's hit to the MTA With congestion pricing paused, what's MTA's plan B to fund upgrades? Here's what we know

The verdict arrived as Metro-North’s parent agency, the MTA, is trying to figure out how to replace some $1 billion in annual revenue expected from a congestion pricing plan that would have charged tolls for drivers who enter Manhattan’s Central Business District.

Last month, Hochul decided to shelve that plan, which was supposed to pay for upgrades on MTA’s subways, buses and commuter rails.

Thomas C. Zambito is a reporter on The USA Today Network's New York State Team. He can be reached at tzambito@lohud.com.

This article originally appeared on Rockland/Westchester Journal News: After Valhalla NY crash can MTA handle a multi-million dollar payout?