Judge gives final approval to $600M Norfolk Southern train derailment settlement

Update: 

• A federal judge in Ohio gave final approval to a $600 million settlement between Norfolk Southern and thousands of local residents and businesses impacted by a February 2023 train derailment in East Palestine, Ohio. 
• On Sept. 25, U.S. District Judge Benita Y. Pearson granted final approval to the deal and overruled objections.
• The deal covers all class action claims within 20 miles of the train derailment and personal injury claims within 10 miles of the incident. 
• Consumers targeted Norfolk Southern with multiple complaints in the wake of the train derailment, which local residents and businesses argued exposed them to illness, damaged property and contaminated residences and workplaces, among other things.

Norfolk Southern tank car overview: 

• Who: Norfolk Southern argued against dismissing claims against OxyVinyls LP, Trinity Industries Leasing Co., GATX Corp. and the General American Marks Co. related to the Norfolk Southern train derailment.
• Why: Norfolk Southern claimed in court that the owners of the five tank cars containing a highly flammable toxic chemical used modified or noncompliant tank cars, Law360 reports.
• Where: The Norfolk Southern train derailment occurred in East Palestine, Ohio.

(Oct. 26, 2023)

Lawyers for the Norfolk Southern train company argued that tank cars filled with a toxic and flammable chemical were modified and noncompliant, leaving the owners of those cars liable for issues related to the Feb. 3 Norfolk Southern derailment in East Palestine Ohio, Law360 reports.

The argument came as Norfolk Southern argued claims against OxyVinyls LP, Trinity Industries Leasing Co., GATX Corp. and the General American Marks Co. should not be dismissed in the case.

A previous class action lawsuit claimed that the train allegedly had 20 cars that contained “hazardous materials” and 11 of the cars derailed with five Norfolk Southern tank cars carrying vinyl chloride. Afterward, a fire involving the chemicals lasted for days.

Then on Feb. 6, Norfolk Southern allegedly blew holes into the derailed vinyl chloride cars in order to leak the chemicals into a trench with flares that would ignite.

Norfolk Southern said in court that it has paid millions in damages to residents and businesses in the East Palestine area for damages and environmental cleanup and that OxyVinyls, Trinity and GATX should be responsible for some of the costs for damages, Law360 reports.

Norfolk Southern tank cars investigation continues as NTSB looks to determine causes

The National Transportation Safety Board continues to investigate what led to the Norfolk Southern derailment and issues afterward.

There are indications that at least one train car had a faulty bearing that overheated along with issues with the pressure relief devices on the tank cars.

The plaintiffs in the case cannot say that “purported administrative deficiencies concerning the railcars was the actual or proximate cause of the train derailment, tank car damage, or release of chemicals,” OxyVinyls spokeswoman Celina Cardenas told Law360 about the Norfolk Southern tank cars.

Ohio residents filed a class action lawsuit in March against Norfolk Southern alleging its train derailment of Feb. 3 caused East Palestine residents physical and monetary harm.

Were you impacted by the East Palestine train derailment? Let us know in the comments.

The Norfolk Southern derailment consolidated case is In re: East Palestine Train Derailment, Case No. 4:23-cv-00242, in the U.S. District Court for the Northern District of Ohio.

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