Trial Begins For Norfolk Southern Ohio Train Derailment Payout

EAST PALESTINE, OH – FEBRUARY 14: A Norfolk Southern train is en route on February 14, 2023 in East Palestine, Ohio. Another train operated by the company derailed on February 3, releasing toxic fumes and forcing evacuation of residents.

This week marked the start of the trial to determine whether two businesses will pay Norfolk Southern back for the $600 million class-action settlement in the East Palestine, Ohio, derailment in 2023.

The settlement payout was previously accepted by Norfolk Southern.

However, the train company is now requesting that two businesses contribute to the multimillion-dollar settlement: GATX Corp., a railcar lessor, and Oxy Vinyls, a well-known chemical manufacturer.

Last year, the settlement, in addition to a 27% attorney fee, was granted by U.S. District Judge Benita Pearson. This trial will also be supervised by her.

The compensation sum would remain the same if the jury rules in favor of Norfolk Southern. The two businesses would pay the rail company, but the rail company is still liable for the payout — according to The Hill.

“Despite obtaining valuable releases under Norfolk Southern’s settlement with the class, GATX and OxyVinyls have yet to contribute anything to that settlement or to the class at all,” Norfolk Southern’s attorneys stated in the court filings.

“The evidence presented at trial will establish that both GATX and OxyVinyls acted negligently and that Norfolk Southern is entitled to contribution from each.”

In September 2024, NewsNation had reported that many East Palestine residents were unhappy with the large settlement, since they were worried about the EPA’s handling of the contamination data — citing a lack of transparency with the locals.

Jami Wallace, a resident who lived in East Palestine at the time, called the judge’s ruling “a sham” as she left the courthouse. Wallace also later told the press that the area’s “creeks are still contaminated” on “NewsNation Now” in February.

“The only thing changing is people’s symptoms are actually going to longer-term illnesses,” she stated, while pleading for more assistance for East Palestine residents impacted by the toxic spill.

Three days after the disaster, local officials reportedly burned 116,000 gallons of vinyl chloride, a carcinogen, to stop explosions from occurring. However, officials later discovered that the move wasn’t necessary — fueling even more anger in the community.

“The deliberate burn of rail cars carrying hazardous chemicals after last year’s crash in East Palestine wasn’t needed to avoid an explosion because the rail cars were cooling off before they were set on fire, the head of the National Transportation Safety Board told U.S. Sen. JD Vance,” Cleveland News reported.

Additionally, local residents have continued to complain about illnesses and other lingering issues related to the quality of the community’s water source, according to The Hill.

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