ValuJet Flight 592: $262 Million for 110 Everglades Crash Victims

On May 11, 1996, ValuJet Flight 592 took off from Miami International Airport bound for Atlanta and crashed into the Florida Everglades about eleven minutes after departure. All 110 people aboard died. Federal investigators determined that oxygen generators improperly prepared and loaded by aircraft maintenance contractor SabreTech had ignited a cargo-hold fire that destroyed the DC-9 before the crew could return to the airport.

The victims ranged from college students to retirees. Families filed wrongful-death claims in both Florida state courts and in the federal multi-district litigation consolidated in the Southern District of Florida. The case raised questions about regulatory oversight of low-cost carriers and about the outsourcing of aircraft maintenance to third-party contractors.

Steven Marks of Podhurst Orseck was appointed lead liaison counsel for the state-court plaintiffs and served on the federal MDL Plaintiffs' Steering Committee, coordinating strategy across dozens of separate family claims against ValuJet and SabreTech. The dual-track litigation pressed both defendants on their respective roles: ValuJet for operating a poorly supervised maintenance program, and SabreTech for the direct mishandling of the hazardous cargo.

Settlements were reached with both insurers. Lloyd's of London, which carried SabreTech's aviation liability policy, paid $151 million. United States Aviation Underwriters, ValuJet's insurer, contributed $111 million. Together the two payments totaled more than $262 million, resolving claims for all but two of the 110 families. Payments averaged approximately $2.4 million per family, though individual amounts varied based on each victim's circumstances.

SabreTech was later criminally convicted of mishandling hazardous materials, becoming the first aviation company in U.S. history to face criminal conviction for its role in a commercial airline crash. The company ceased operations. The crash also prompted the FAA to expand cargo-fire detection and suppression requirements across the industry.