VICTORIA, Texas In unusual development, victims of a bus crash near here early last year have settled their lawsuits against the driver, owners and managers of the coach companies, which investigators found were operating illegally in this country.

Dozens of passengers were seriously injured in the Jan. 2, 208, crash that took the life of one passenger, a 55-year-old Houston man.

The $10 million in insurance held by the bus companies involved was divvied up among the victims.

"This settlement represents all of the insurance proceeds available to date to settle the claims arising out of this tragic accident," said Houston attorney Richard Mithoff.

Forty-four of the 47 passengers on the coach that crashed filed personal injury claims. In addition, the wife and daughter of the man killed, Rosalba and Veronica Mendez, filed personal injury claims, as well as wrongful death, survival and other claims. Both women also were on board during the 4 a.m. crash.

The accident occurred as the bus was traveling from Monterrey, Mexico, through Victoria and toward Houston. Investigators say the driver fell asleep, awoke momentarily, over-corrected, causing the coach to overturn.

"We hired a mediator, who evaluated the value of each persons claim if it were to go to court," said Jim Cole, another of the plaintiff attorneys. "Everyone recovered a percentage. I believe it was a fair process that was used. I just think its a shame the bus companies didn't maintain financial responsibility for all the losses. No one received full compensation."

Of the $10 million settlement:

The Mendez family got $4.3 million.

The 44 other passengers divided the remaining $5.7 million.

In the suits, Houston-based Capricorn Bus Lines, International Charter Services and Transportes Chavez were charged, in part, with failing to properly screen, test and qualify drivers - as well as allowing drivers to operate a bus while fatigued.

The coach driver, Roberto Cruz of Houston, had multiple driving-while-intoxicated convictions. He was not drunk the night of the crash.

The bus companies also had a long list of citations before the crash.

Capricorn Bus Lines leased its buses to International Charter Service, which can legally transport passengers across state lines and into Mexico.

A federal investigation into the crash revealed what is thought to be an illegal scheme to move non-U.S. complaint, Mexican-made buses into Texas. (See Nov. 1 Bus & Motorcoach News.)

The charter bus should not have been operating in Texas because it was not built to U.S. federal safety standards, according to the National Transportation Safety Board.