Settlement Finalized Despite Objections from Some Residents
A federal judge has approved a $600 million class-action settlement for residents impacted by the 2023 Norfolk Southern train derailment in East Palestine, Ohio. The derailment, which caused a fire and spilled hazardous chemicals, affected thousands of residents, many of whom will now receive compensation.
U.S. District Judge Benita Pearson gave the settlement final approval on Wednesday, following a hearing in which attorneys representing the railroad and the plaintiffs argued that the majority of residents supported the deal. According to the attorneys, approximately 55,000 claims were filed, with only 370 households and 47 businesses opting out of the settlement.
Concerns About Health Impact and Settlement Process
Despite broad support, some residents voiced concerns about the settlement, claiming it may not be enough to address long-term health risks from the derailment. These objectors argued that the deal was rushed, leaving them uncertain about future health issues that may arise due to exposure to hazardous chemicals.
Residents noted that test results reported by the Environmental Protection Agency (EPA) have been inconsistent, and they claim that plaintiff attorneys have not fully disclosed their findings from private investigations. One toxicologist hired by the attorneys told residents not to worry about potential cancer risks, which further fueled their skepticism.
Jami Wallace, a local resident, expressed frustration with the process, saying, “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.”
Details of the Settlement
With the settlement approved, payments are expected to be distributed soon, with the first checks likely going out before the end of the year. However, any financial assistance already received from the railroad will be deducted from final payments. Residents who were relocated and had their expenses covered by Norfolk Southern may not receive additional compensation.
Under the terms of the settlement, households within 2 miles (3.2 kilometers) of the derailment site could receive up to $70,000 for property damage and up to $25,000 per person for health-related issues. The compensation amount decreases the farther people lived from the derailment site, with some residents on the outskirts receiving only a few hundred dollars.
Plaintiffs’ attorneys praised the outcome, stating, “This outcome would not have been possible without the resilience and support of the East Palestine community. We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”
The 2023 Derailment and Ongoing Cleanup Efforts
The derailment occurred on February 3, 2023, when tank cars carrying hazardous chemicals ruptured and caught fire near East Palestine, a small town on the Ohio-Pennsylvania border. Days later, officials intentionally detonated five tank cars filled with vinyl chloride, a toxic chemical, to prevent an explosion, leading to further contamination.
Since the disaster, Norfolk Southern has provided $108 million in assistance to the community and spent over $1 billion on cleanup efforts. The railroad issued a statement following the settlement approval, saying, “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.”
