A Quebec judge has rejected Canadian Pacific Railway’s challenge of a court settlement – targeted at compensating the residents of Lac-Megantic.

Approximately 25 companies – accused of responsibility in the train tragedy that killed 47 people – have put up a fund of $431.5 million.

Canadian Pacific opposed the settlement and wanted Superior Court Justice Gaetan Dumas to declare the ongoing bankruptcy proceedings for the railway responsible for the disaster – Montreal Maine and Atlantic Railway – illegitimate.

CP said the case should be moved to Federal Court – and also wanted the judge to rule that the settlement fund for victims was unfair – saying it would have limited the railway company’s ability to countersue the other firms involved in the tragedy.

In his ruling Dumas stated that Superior Court has legitimate jurisdiction – and the settlement process to compensate victims can go ahead.

CP says it is reviewing the decision – and has no immediate comment.