Norfolk Southern's $600 Million Settlement for Toxic Train Derailment in East Palestine Approved by Judge
Judge Benita Y. Pearson of the Northern District of Ohio, who was appointed by President Obama, gave her approval on Wednesday for a $600 million class-action settlement. The settlement requires Norfolk Southern to compensate the residents of East Palestine, Ohio, and those living within a 20-mile radius of the town. This settlement follows a toxic train derailment disaster last year that filled the small town with thick, black clouds of hazardous chemicals.
Details of the Settlement
The agreement that Judge Pearson approved on Wednesday pertains to the derailment that occurred on February 3, 2023, in the small blue-collar town of approximately 5,000 residents. The settlement was initially announced in April.
During a hearing in Youngstown, the judge described the settlement proposal as "fair, reasonable, and adequate." However, she also approved $162 million in attorney fees.
The Cause of the Lawsuits
The lawsuits were a result of a Norfolk Southern freight train derailment in East Palestine in February 2023. This incident led to a controlled burn of tanker cars containing thousands of gallons of vinyl chloride. The burn produced toxic plumes of phosgene gas, a chemical weapon used in World War I.
Despite ongoing worries about long-term health issues among the town's residents, health officials, including those from the EPA, have assured residents that tests of the air and drinking water indicate that everything is safe. However, many residents dispute this.
Residents' Reactions to the Settlement
Jami Wallace, a resident of East Palestine, told AP News, "These attorneys were bullying people and telling them they were never going to get any money if they didn't take this. People felt backed into a corner."
The settlement includes $70,000 per household for property damage and up to $25,000 per person for health problems within 2 miles of the derailment area. The compensation for residents decreases as the distance from the incident area increases.
The lawyers handling the class action lawsuit released a statement saying, "This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of impacted residents and business owners." They added, "We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward."
Legal Representation
The class action is represented by several law firms, including Zoll & Kranz LLC, Burg Simpson Eldredge Hersh & Jardine PC, Grant & Eisenhofer PA, Simmons Hanly Conroy LLP, and Morgan & Morgan PA. Norfolk Southern is represented by Wilmer Cutler Pickering Hale and Dorr LLP and Dickie, McCamey & Chilcote PC.
Long-Term Health Concerns and Political Backlash
Although no fatalities or injuries occurred during the derailment, long-term health issues are anticipated for some residents who were exposed to the harmful chemicals. Many residents are still angered by the slow response from the Biden-Harris administration, which has sparked a political controversy.
Tamara Lynn Freeze, a resident of East Palestine, said, "It seems like everybody kind of just wanted it to be over with. Like the attorneys and obviously Norfolk."
Bottom Line
This settlement serves as a reminder of the potential dangers associated with transporting hazardous materials and the long-lasting effects such incidents can have on communities. It also highlights the importance of swift and effective responses to such disasters. What are your thoughts on this settlement? Do you think it's fair and adequate? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing at 6pm every day for more articles like this one.
