Train-Derailment

Is a Settlement of the Ohio Train Derailment Environmental Incident Imminent?

Posted by

On September 13, plaintiffs in the U.S. District Court for the Northern District of Ohio action pending against Norfolk Southern arising out of last year’s train derailment and toxic chemical spill in East Palestine filed a motion seeking final approval of a $600 million settlement.

The settlement includes a $162 million attorneys’ fees payment. The residents and others affected by the incident argued that the settlement is reasonable and do not need to wait until remediation is complete to evaluate the costs Northern Southern and others would pay for the cleanup.

The environmental suit alleged numerous harms such as lost income, property damage, contamination at residences and workplaces, and increased risk of serious and potentially fatal illnesses, including cancer and organ damage, necessitating ongoing medical monitoring.

The settlement is designed to resolve all class claims, including negligence, strict liability, nuisance and trespass, from residents, businesses and property owners, and other plaintiffs within 20 miles of the derailments, as well as personal injury claims for residents within 10 miles of the derailment through the voluntary exposure settlement.

The court filing additionally challenges claims that class counsel had withheld information, arguing that the objector who made the claim relied on a “discredited” whistleblower and other information under seal by the court. Some objectors had challenged the voluntary exposure settlement, which allows class members to release their personal injury claims for a payout now. Plaintiffs argued that these objectors misunderstood that this was an additional benefit that was not compulsory and that any plaintiffs who wished to wait until symptoms present themselves could do so. Additionally, the plaintiffs told the court that the payouts were designed to address damages faced by entire households rather than by individual and that by doing so, the processing time for settlement payment would be reduced.

“With a $600 million settlement on the table, we have an opportunity to start rebuilding our lives and community,” Rick Feezle, a class representative, said in the statement. “I will never forget what Norfolk Southern did to our community, and I doubt I will ever fully forgive them, but this settlement is a step in the right direction for East Palestine.”

As widely reported, Norfolk Southern also faced U.S. EPA and the State of Ohio claims concerning the derailment, which sought reimbursement for government funds spent in the cleanup. Norfolk has settled the claims with the EPA for $25 million.

We will be monitoring the U.S. District Court for the Northern District of Ohio action to see if the settlement is approved.