Judge Oks $600M Settlement for Ohio Train Derailment

Judge Oks $600M Settlement for Ohio Train Derailment

Introduction

A federal judge has approved a $600 million class-action settlement offered by Norfolk Southern Railroad to compensate individuals living within a 20-mile radius of the disastrous train derailment in East Palestine, Ohio, that occurred in February 2023.

The approval followed a hearing where lawyers for both the residents and the railroad argued that the settlement had strong support from the affected community. Of the approximately 55,000 claims filed, only 370 households and 47 businesses opted out of the settlement.

However, some residents voiced concerns about the settlement, fearing it was rushed and insufficient. They argued that it’s too soon to fully understand the potential long-term health risks associated with the derailment, particularly given inconsistent environmental test results from the Environmental Protection Agency (EPA). Additionally, they expressed frustration that their attorneys had not disclosed all the information gathered during their investigations, leading to uncertainty about the risks involved.

Objectors hoped the judge would require the plaintiff’s attorneys to release the test results their experts had conducted after the derailment. They also wanted more answers about a toxicologist who, during one of the town hall meetings held by the attorneys, downplayed the potential cancer risk, claiming he didn’t believe anyone would develop the disease. This angered residents, many of whom have reported unexplained health problems since the incident and have been consulting with doctors conducting studies to determine the health impacts. Health experts say it’s still too early to determine what those impacts might be.

“There was pressure to accept the deal,” one resident said, feeling that the attorneys were forcing people to agree to the settlement by telling them they would receive no compensation if they didn’t. Many residents felt they had no choice but to agree. With the judge’s approval, the settlement paves the way for payments to be distributed, with attorneys previously stating that they hoped to start sending checks before the end of the year.

As part of the settlement terms, any financial aid already received from the railroad will be deducted from the final payouts. This means that plaintiffs who had to relocate temporarily—paid for by the railroad—may not receive any additional compensation.

The settlement provides up to $70,000 per household for those who lived within two miles of the derailment site, plus up to $25,000 per person for any health problems. The farther a resident lived from the derailment, the lower the compensation, with some payments potentially dropping to just a few hundred dollars for those at the edge of the affected zone.

Despite objections, the plaintiffs' attorneys expressed their satisfaction with the settlement. “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 said in a statement. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”

The derailment, which occurred late on February 3, 2023, involved tank cars filled with hazardous chemicals that ruptured and caught fire just outside the small Ohio town on the border with Pennsylvania. A few days later, officials made the controversial decision to intentionally blow open five tank cars of vinyl chloride, a toxic plastic ingredient, fearing the cars would explode. This release and subsequent burn of chemicals fueled concerns among residents about long-term health risks.

In the months following the incident, Norfolk Southern has offered $108 million in assistance to the community and has covered the extensive cleanup costs, which have exceeded $1 billion. The railroad expressed its commitment to the community, saying in a statement, “We made a promise to make things right, and this is just one piece of that commitment. We remain dedicated to this community for the long haul and look forward to continuing our relationship with the Village as we work to help the area recover and thrive.”

Some residents, despite concerns, have accepted the settlement to avoid the uncertainty and challenge of facing the railroad’s legal team alone. One plaintiff explained that while the possibility of future health issues like cancer is concerning, the thought of going up against Norfolk Southern's lawyers individually was daunting. "It seems like everybody just wanted it to be over with, the attorneys and obviously Norfolk," she said.

She and her husband, who live in his childhood home just 175 yards from the derailment site, now face a difficult decision about whether to stay in the home or move somewhere else where they can feel safe and live more comfortably.