A federal judge has approved a $600 million class-action settlement over last year’s Norfolk Southern Railroad derailment in eastern Ohio, but many people living near East Palestine have no idea how much the settlement will ultimately cost them. I still have doubts about whether I can get it.
Tentative approval of the settlement came late Tuesday, and lawyers involved in the case are expected to return to the region to answer more questions about the deal agreed to this spring by Atlanta-based Norfolk Southern Railroad Co.
NTSB says burning toxic chemicals not necessary after East Palestine train derailment
“What we’re saying to the community is, please give us the time to explain why we think this is fair,” said Mike Morgan, one of the plaintiffs’ lead attorneys.
Morgan said the settlement would resolve claims against the railroad and other defendants in the lawsuit, including vehicle owners and chemical manufacturers that produced the vinyl chloride that was released and burned after the derailment. .
Black smoke rises into the sky over East Palestine, Ohio, on Monday, Feb. 6, 2023, from a controlled explosion of part of a derailed Norfolk Southern train. A federal judge signed off on a $600 million class action settlement Tuesday, May 21, 2024, over last year’s tragic Norfolk Southern derailment in eastern Ohio, but many who live near East Palestine are still wondering how much they will ultimately get from the settlement. (AP Photo/Jean J. Pasker)
Neither the Environmental Protection Agency nor any other government agency overseeing the cleanup were named as defendants, but there has been much confusion about whether it could affect any future lawsuits against them because of broad language in the fine print of the agreement that reads: “All governmental agencies, entities, authorities, and their employees, officers, agents, members, and volunteers, whether federal, state, county, or local, are included among the released parties.”
Morgan said the language is not designed to prevent all lawsuits against the government, and that it may be difficult to file a lawsuit anyway because of the limits on government liability.
“I don’t understand why they would try to get us to give up the rights that we have,” said Jamie Wallace, who left his home after the derailment.
Pending lawsuits brought against the railroad by the EPA and the state of Ohio are not affected by the settlement.
The agreement is intended to address all liability claims against businesses within a 20-mile (32-kilometer) radius of the derailment and, for residents who choose to participate, also covers personal injury claims within a 10-mile (16-kilometer) radius of the derailment.
But lawyers involved say the region’s appeals court ruling leaves no way right now to address future medical costs if someone develops cancer in the future. Residents may decide to receive compensation for property damage without receiving compensation for personal injury.
Concern about the potential long-term health effects of exposure to chemicals following an accident is a major concern for local communities. More than a year after the derailment, many people still complain of symptoms such as respiratory problems and unexplained rashes, while others have no health problems.
The amount you receive in settlement money depends on how close you are to the derailment site and how much of an impact the accident had. Families living within two miles (3.2 kilometers) of the derailment site may only receive $70,000 for property damage and $10,000 for injuries, according to court filings. Those who live far away will receive much less, with families living more than 15 miles (24 kilometers) away may only receive $250.
Many residents question whether they will be adequately compensated after the money is distributed in the deal.
But Morgan said the final amount a family receives could be significantly higher once claims agents take into account individual factors.
If the judge approves the settlement, the lawyers are expected to receive up to $162 million in settlement money.
The amount residents ultimately receive will be influenced by the amount of aid from Norfolk Southern, which provided $21.4 million in direct assistance to families who had to temporarily relocate after the derailment. The amount the family received from the railroad will be deducted from the settlement, but the money will not be returned to Norfolk Southern. Instead, that money is returned to a settlement fund and distributed to the community.
Following the provisional approval of the agreement, a dedicated claims center has been opened in East Palestine to assist those seeking a share of the settlement proceeds, and lawyers plan to hold further community meetings.
Residents who believe the settlement is not good enough have until July 1 to withdraw from the agreement and retain the right to sue individually at a later date. That means there will be time to read the National Transportation Safety Board’s final report on the derailment, which will be released at a public hearing June 25 in East Palestine. Previously, the proposed opt-out deadline was the day before that hearing.
CLICK HERE TO GET THE FOX NEWS APP
The NTSB said the cause of the accident was likely overheating of the train’s car bearings, which was not immediately detected by a network of detectors installed by the railroad along the tracks.
The NTSB chief also said there was no need to blow up the five tank cars loaded with vinyl chloride to prevent them from exploding because they were actually starting to cool down, although fires continued around them.
