Norfolk Southern has agreed to pay $600 million to settle a class-action lawsuit related to a train derailment in East Palestine, Ohio in February 2023. The settlement includes payments to residents and businesses within a 20-mile radius of the derailment, as well as personal injury claims within a 10-mile radius. Individuals and businesses will have the flexibility to use the compensation for needs such as health care, property restoration, and business losses as a result of the incident. The company stated that the settlement is not an admission of liability.
The derailed train was carrying hazardous materials, including 700,000 pounds of vinyl chloride, a chemical used in plastics manufacturing. Authorities fears of an explosion led to the contents of the car carrying the chemical being released and set ablaze in the town, causing significant concern among residents and prompting evacuations. Many residents express ongoing worries about contamination despite reassurances from Norfolk Southern and government officials that the town and homes are safe. The settlement aims to provide some form of closure and support to affected individuals and businesses.
Following the derailment, there was increased focus on rail safety measures and promises of legislative action to prevent similar disasters. However, progress in improving rail safety has been slow, with proposals stalling in Congress and derailments at major railroads on the rise. President Biden visited East Palestine after the incident, although some residents, including the town’s mayor, criticized the timing of the visit. The incident has underscored the importance of robust rail safety measures and the need for swift and effective responses to emergencies.
Lawyers representing the victims have described the settlement as fair, reasonable, and adequate, citing the speed with which it was reached and the financial compensation allocated to residents and businesses. The settlement is in addition to over $100 million already paid by Norfolk Southern to the community, including direct payments to residents. Both the company and the plaintiff’s lawyers have emphasized that the settlement was the result of extensive fact discovery, expert development, and mediation processes, rather than an acknowledgement of fault on the part of Norfolk Southern.
The settlement agreement is subject to approval by U.S. District Judge Benita Y. Pearson, with attorneys for the plaintiffs expected to seek this approval by April 19. The resolution of the lawsuit signifies a significant step towards addressing the aftermath of the derailment and providing support to those affected. While the incident had caused widespread disruption and concern, the settlement aims to offer some form of redress and assistance to the impacted individuals and businesses. The agreement underscores the importance of corporate accountability and the need for timely and responsible responses to accidents involving hazardous materials.
