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 must still be approved by U.S. District Judge Benita Y. Pearson and will include payments to residents and businesses within 20 miles of the derailment. It will also resolve personal injury claims within a 10-mile radius of the accident. The settlement allows individuals and businesses to use compensation as they see fit to address any potential adverse impacts from the derailment, including health care needs, property restoration, and business losses.
Lawyers representing the victims have deemed the settlement fair, reasonable, and adequate for the community on multiple grounds, including the speed at which the resolution was achieved and the amount of money residents and businesses will receive. The train involved in the derailment was carrying hazardous materials, including 700,000 pounds of vinyl chloride. Authorities, fearing an explosion, set the contents of the derailed car on fire, leading to significant smoke and evacuations. Despite assurances from Norfolk Southern and officials that the town and homes are safe, many residents remain concerned about contamination.
After the derailment, regulators vowed to enhance rail safety measures, and lawmakers promised legislation to prevent similar incidents. However, proposals to improve rail safety have encountered obstacles in Congress, and derailments at major railroads have increased. President Biden visited East Palestine in February, where some residents expressed disappointment in how long it took for his visit to take place. Attorneys for the plaintiffs are seeking approval from Judge Pearson for the settlement by April 19. The $600 million settlement is in addition to the over $100 million Norfolk Southern has already paid to the community, including direct payments to residents.
Norfolk Southern emphasized that the settlement does not imply an admission of liability or fault on their part. The agreement was the result of extensive fact discovery, expert development, and three days of mediation involving the company and the plaintiff’s lawyers. The settlement provides a means for individuals and businesses affected by the derailment to receive compensation to address various potential impacts, offering flexibility in addressing health, property, and business-related needs. The legal resolution of this case marks a significant step towards providing relief and closure to the community of East Palestine in the aftermath of the train derailment incident.
