A federal judge has approved a $600 million class-action settlement offered by Norfolk Southern more than a year after a devastating train derailment in East Palestine, Ohio. Judge Benita Pearson approved the settlements and a 27% fee for attorneys, overruling all objections. The settlement is meant to compensate households and businesses within a 20-mile radius of the accident that submitted claims. Approximately 55,000 claims were filed, with only 370 households and 47 businesses choosing to opt out of the settlement.
Politicians have reacted to President Biden visiting East Palestine over a year after the accident, with many feeling that it is “too little, too late.” Residents have voiced concerns that the settlement was rushed before individuals knew the full extent of the potential health effects following the catastrophic train derailment in February 2023. Some residents felt pressure from attorneys to accept the settlement, believing they had no other option. A group of residents and attorneys petitioned Judge Pearson for more time to evaluate the settlement, arguing that the long-term effects of the disaster are still unknown.
As part of the settlement, any aid that residents received from the railroad will be deducted from their final payments. Those who had to relocate for an extended period while the railroad paid for hotels or rental homes are unlikely to receive any additional compensation. Residents who lived within 2 miles of the derailment could receive up to $70,000 per household for property damages, as well as $25,000 per person for any health problems. However, payments drop to as little as a few hundred dollars for those who live closer to the derailment location.
The plaintiffs’ attorneys expressed gratitude for the resilience and support of the East Palestine community and the broader class of impacted residents and business owners. They stated that the distribution of funds will begin in the coming weeks to help the community rebuild and move forward from the disaster. When the train derailed in February 2023, tank cars carrying hazardous chemicals spilled and caught fire just outside the small town on the Ohio-Pennsylvania border. Officials decided to blow open five tank cars of vinyl chloride and burn the toxic plastic ingredient inside due to fears of explosion.
Overall, the $600 million class-action settlement approved by the federal judge will compensate households and businesses within a 20-mile radius of the East Palestine train derailment. Residents and businesses who filed claims will receive varying amounts based on their proximity to the accident site and the damages incurred. While some residents have voiced concerns about the timing and rushed nature of the settlement, the approval signals a step forward in providing compensation to those affected by the catastrophic incident. The plaintiffs’ attorneys have expressed appreciation for the community’s support and resilience and have committed to the distribution of funds to aid in the rebuilding of East Palestine and its residents.
