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First Claims Agreement Reached In Galaxy Airlines Plane Crash

May 3, 1985

MINNEAPOLIS (AP) _ The first claims settlement has been reached in the crash of a Galaxy Airlines charter plane in Nevada that killed 70 people, most of them from Minnesota, attorneys said Friday.

The settlement was reached with Galaxy on behalf of the two children of Mary Ellen Krachey of Minneapolis, said Mark Stageberg, the children’s attorney.

She was among those who died when the four-engine turboprop crashed on takeoff from the Reno, Nev., airport last Jan. 21. Only one person, George Lamson Jr. of St. Paul, survived.

The amount and details of the settlement would not be released until after a hearing Monday in Hennepin County District Court, saidStageberg and Galaxy attorney David Martin.

Ms. Krachey, who was divorced, had two children, Michell, 19, and Lance, 17, Stageberg said. No suit was filed in the case, and Stageberg negotiated directly with Galaxy’s attorneys, he said.

Martin and Stageberg said the claims settlement is the first to be reached between Galaxy and heirs of the crash victims.

The airline is negotiating agreements with other people, Martin said, but he he declined to provide details. ″We are working to settle as many of these as possible,″ he said.

″Galaxy approached every party and told them we are prepared to negotiate with them,″ Martin said. ″They can sue if they want to, but we will negotiate now.″

Twenty-nine wrongful death suits have been filed against the airline, based in Ft. Lauderdale, Fla., Martin said.

The cause of the crash remains under investigation by the National Transportation Safety Board.

The plane was returing to Minneapolis-St. Paul International Airport after a gambling and skiing holiday. It climbed no higher than 200 feet and crashed two miles from Reno Cannon International Airport.

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