Norfolk Southern agrees to $600M settlement for Ohio train derailment

Apr 09, 2024

Lauren Taylor Reporter

By Lauren Taylor (Reporter), Jake Maslo (Video Editor)

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Over a year after a Norfolk Southern train derailment resulted in a fiery explosion in East Palestine, Ohio, the railroad reached a preliminary agreement for a $600 million settlement on Tuesday, April 9. However, a judge will need to approve and sign the lawsuit.

“If approved by the court, the agreement will resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the derailment,” a Norfolk Southern press release said.

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The agreement notably does not entail any admission of wrongdoing, liability or fault from the railway.

In February of 2023, 38 cars of a Norfolk Southern train derailed in East Palestine, triggering a massive fire and releasing more than a million gallons of toxic materials, including vinyl chloride.

Approximately 5,000 residents reside in the area, many of whom have voiced concerns regarding the potential impacts of the derailment on their health, property values and businesses. The Environmental Protection Agency (EPA) has affirmed that air and water in the small eastern Ohio city are safe after conducting multiple tests.

To date, Norfolk Southern has disclosed paying $104 million to assist the East Palestine community, along with an additional $4 million allocated to upgrade drinking water infrastructure, $2 million for community projects and $500,000 for economic development.

The railway has stated that if the court approves the settlement, “individuals and businesses will be able to use compensation from the settlement in any manner they see fit to address potential adverse impacts from the derailment,” including for health care-related matters or property restoration.

The crash site remains under investigation, with Norfolk Southern expecting cleanup efforts to conclude sometime this summer.

Tags: East Palestine, hazardous materials, Lawsuit, Norfolk Southern, Ohio, Settlements, train derailment, Trains

[LAUREN TAYLOR]

A LITTLE MORE THAN A YEAR AFTER A NORFOLK SOUTHERN TRAIN – CARRYING TOXIC AND HAZARDOUS MATERIALS DERAILED AND CAUSED A FIERY EXPLOSION IN EAST PALESTINE, OHIO – THE RAILROAD HAS AGREED IN PRINCIPLE TOA $600 MILLION DOLLAR SETTLEMENT.

ACCORDING TO A NEWS RELEASE BY THE RAILROAD COMPANY – “IF APPROVED BY THE COURT, THE AGREEMENT WILL RESOLVE ALL CLASS ACTION CLAIMS WITHIN A 20-MILE RADIUS FROM THE DERAILMENT AND, FOR THOSE RESIDENTS WHO CHOOSE TO PARTICIPATE, PERSONAL INJURY CLAIMS WITHIN A 10-MILE RADIUS FROM THE DERAILMENT.”

THE AGREEMENT DOES NOT INCLUDE ANY ADMISSION OF WRONG-DOING, LIABILITY, OR FAULT FROM THE RAILWAY.

IN FEBRUARY 2023 – 38 CARS OF A NORFOLK SOUTHERN TRAIN DERAILED IN EAST PALESTINE – TRIGGERING A MASSIVE FIRE – RELEASING MORE THAN A MILLION GALLONS OF TOXIC MATERIALS – INCLUDING VINYL CHLORIDE.

THERE’S ABOUT 5-THOUSAND RESIDENTS LIVING IN THE AREA – AND MANY EXPRESSED CONCERNS ABOUT THE POTENTIAL IMPACTS THE DERAILMENT COULD HAVE ON THEIR HEALTH, PROPERTY VALUES, AND BUSINESSES.

THE EPA SAYS THE AIR AND WATER IN THE SMALL EASTERN OHIO CITY ARE SAFE AFTER MULTIPLE TESTS.

SO FAR – NORFOLK SOUTHERN SAYS IT’S PAID $104-MILLION DOLLARS TO ASSIST THE EAST PALESTINE COMMUNITY… ANOTHER $4-MILLION TO UPGRADE THE DRINKING WATER INFRASTRUCTURE… ANOTHER $2-MILLION FOR COMMUNITY PROJECTS… AND ANOTHER $500-THOUSAND FOR ECONOMIC DEVELOPMENT.

THE RAILWAY SAYS IF A JUDGE APPROVES AND SIGNS OFF ON THE LAWSUIT – “INDIVIDUALS AND BUSINESSES WILL BE ABLE TO USE COMPENSATION FROM THE SETTLEMENT IN ANY MANNER THEY SEE FIT TO ADDRESS POTENTIAL ADVERSE IMPACTS FROM THE DERAILMENT” INCLUDING FOR HEALTHCARE RELATED MATTERS OR EVEN PROPERTY RESTORATION.

THE CRASH SITE IS STILL UNDER INVESTIGATION AND NORFOLK SOUTHERN EXPECTS CLEAN-UP EFFORTS TO BE COMPLETED SOMETIME THIS SUMMER.