Judge Approves Settlement Following East Palestine Train Derailment

A federal judge has approved a $600 million settlement over the East Palestine train derailment.

At a Glance

A federal judge approved a $600 million class-action settlement from Norfolk Southern railroad for residents within 20 miles of the East Palestine derailment.
Judge Benita Pearson gave final approval after a hearing where it was argued that residents overwhelmingly supported the settlement.
Approximately 55,000 claims were filed, with only 370 households and 47 businesses opting out.
Aid received from the railroad will be deducted from final payments, potentially leaving some residents with no compensation.
Payments are expected to start quickly, with initial checks hoped to be mailed before the end of the year.

Settlement Over the East Palestine Derailment

A federal judge has given the green light to a $600 million class-action settlement for residents within 20 miles of the East Palestine, Ohio, train derailment. The judgment, issued by Judge Benita Pearson, marks the end of a long legal battle following the incident on February 3, 2023. The settlement was offered by Norfolk Southern railroad, aiming to compensate affected residents and address widespread concerns arising from the derailment.

The derailment involved hazardous chemicals and led to a controlled burn of vinyl chloride to prevent explosions. Aid provided by Norfolk Southern, amounting to $108 million alongside cleanup costs surpassing $1 billion, will be deducted from the final payments. This deduction could mean that some residents, despite their suffering, may receive little to no compensation.

Ohio judge approves $600 million settlement for residents near fiery East Palestine train derailment https://t.co/862zFac8jN

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Arguments and Approval

Judge Pearson gave final approval after a hearing where it was presented that residents overwhelmingly supported the settlement. Out of approximately 55,000 claims, only 370 households and 47 businesses chose to opt out. The judge, however, overruled all objections, including a demand to release expert tests and concerns about comments from a toxicologist downplaying cancer risks.

The settlement emphasizes swift distribution, aiming to send out initial checks before year-end. Residents within 2 miles of the derailment may receive up to $70,000 per household for property damage and up to $25,000 per person for health issues. The settlement diminishes for those further away from the incident, creating a tiered compensation system based on proximity to the derailment.

Community and Legal Perspectives

Norfolk Southern has reiterated its commitment to the community’s recovery. It asserted, “We made a promise to make things right and this is just one piece of that commitment. We remain committed 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.”

One condition is that residents have to forfeit their right to sue if someone eventually falls ill or develops cancer. However, one individual, Tamara Lynn Freeze, said, “It seems like everybody kind of just wanted it to be over with. like the attorneys and obviously Norfolk.”

One other resident, Jami Wallace, said, “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.”

Despite concerns over the settlement, many residents affected by the derailment ultimately agreed to the terms. Experts have deemed it too soon to determine the long-term health impacts of the exposure to hazardous chemicals released due to the derailment.