A federal judge has approved a $600 million class action settlement related to last year’s Norfolk Southern train derailment in East Palestine, Ohio. This preliminary approval, granted on May 21, paves the way for attorneys to return to the community to address residents’ concerns and explain the settlement details.
The derailment led to the release and burning of hazardous chemicals, significantly impacting the local community. The settlement aims to resolve claims against Norfolk Southern and other involved parties, including railcar owners and the manufacturer of the released vinyl chloride. However, the Environmental Protection Agency (EPA) and other government entities were not defendants in this lawsuit, despite some confusion over the settlement’s broad language mentioning these entities.
Lead attorney Mike Morgan emphasized the importance of explaining the fairness of the settlement to the affected community. He assured residents that the settlement would not prevent future lawsuits against the government, which might already face limitations due to governmental liability restrictions.
The settlement will cover all damage claims within a 20-mile radius of the derailment and personal injury claims within a 10-mile radius. However, future health costs, such as potential cancer treatments, cannot be addressed under current appellate court rulings. Residents can choose to accept compensation for property damage without claiming personal injury payments.
The long-term health implications of the chemical exposure remain a significant concern, with many residents experiencing respiratory issues, rashes, and other symptoms more than a year after the incident. The compensation amounts will vary based on proximity to the derailment and individual impact. For instance, families within two miles may receive approximately $70,000 for property damage and $10,000 for injuries, while those farther away might receive as little as $250.
While some residents question whether the settlement will provide adequate compensation, Morgan noted that individual factors could lead to larger amounts once evaluated by a claims administrator. The settlement also includes up to $162 million in legal fees for the attorneys, pending judge approval.
Norfolk Southern had previously provided $21.4 million in direct assistance to displaced families, which will be deducted from the settlement amounts but returned to the settlement fund for redistribution within the community. A claims center will be established in East Palestine to facilitate the settlement process, and more community meetings are planned.
Residents have until July 1 to opt out of the settlement if they wish to pursue individual lawsuits. This deadline allows them to review the National Transportation Safety Board’s (NTSB) final report on the derailment, set to be released on June 25. Preliminary findings indicate the derailment was likely caused by an overheating bearing on one of the train cars, which was not detected in time by the existing network of trackside detectors.
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