Fatal Plane Crash Lawsuit Results in $15M Settlement

A wrongful death lawsuit against Morgan Stanley has resulted in a $15 million settlement for the family of one of the victims of a 2006 plane crash that killed all four people onboard.

An Illinois judge in Cook County approved the settlement last week between the family of Michael Waugh, 37, and Morgan Stanley. Waugh’s family claimed that Morgan Stanley and the estate of the pilot, Mark Turek, 59, were responsible for the plane crash.

The complaint alleged Morgan Stanley was negligent for allowing Turek, an amateur pilot who was an employee of the firm, to fly a personal plane to conduct company business. At the time of the accident, Morgan Stanley was the only financial firm that allowed employees to conduct business trips and fly around employees or clients in personal planes, according to Waugh’s family.

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The plane accident occurred on Jan. 30, 2006, when Turek’s 1974 Cessna 421B crashed into a storage yard while on approach to Paulwaukee Municipal Airport. The National Transportation Safety Board determined that Turek reduced the speed of the plane too much on approach, causing the plane to stall and crash.

Turek was a senior vice president with Morgan Stanley, and Waugh was general manager and chief operating partner of Joe’s Seafood, Prime Steak & Stone Crab in Chicago. The two other passengers killed in the plane crash were Kenneth Knudson, the 61-year old founder of Sybaris, and Scott Garland, 40, a financial advisor with Morgan Stanley.

The settlement will award $6 million to Waugh’s widow, Lisa, and the remainder will be divided among their three sons.

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