Judge Approves $600M Settlement for Residents Affected by Train Derailment

A federal judge has approved a massive $600 million class-action settlement from Norfolk Southern railroad for individuals living within a 20-mile radius of the catastrophic derailment in East Palestine, Ohio, that occurred last year. Judge Benita Pearson granted final approval to the settlement following a hearing where attorneys representing the residents argued that the agreement was overwhelmingly supported by the community. According to spokesperson Heather Garcia, approximately 55,000 claims were submitted, with only 370 households and 47 businesses opting out of the settlement.

Despite the majority approval, some residents expressed strong objections to the agreement, questioning whether it would sufficiently address their concerns. They argued that the settlement process was rushed and did not allow for a full understanding of the potential health repercussions stemming from the derailment. Many voiced their frustration over incomplete information regarding test results from the Environmental Protection Agency (EPA) and claimed that not all findings from the attorneys’ investigation had been disclosed.

Residents who objected to the settlement sought additional transparency, particularly demanding the release of test data their expert conducted after the incident. At one of the lawyers’ town meetings, a toxicologist allegedly reassured attendees that cancer would not likely develop among the residents, which further fueled their concerns. Many residents have reported ongoing health issues since the derailment, seeking answers from medical professionals who are studying the long-term health effects. Experts, however, suggest that it remains too early to determine the full impact on public health.

“These attorneys were bullying people and telling them they were never going to get any money if they didn’t take this,” said local resident Jami Wallace. “People felt backed into a corner.”

With the judge’s approval, the settlement paves the way for swift disbursement of payments. Lawyers involved in the case have indicated that they aim to send out the first checks before year-end. It is important to note that any financial assistance already received from the railroad will be subtracted from the final payouts. Wallace and others who had to find temporary housing due to the aftermath of the incident may receive no additional compensation, as the railroad covered such relocation costs during that period.

Eligible residents living within two miles of the derailment can claim up to $70,000 per household for property damage, alongside as much as $25,000 per person for health-related problems. Compensation amounts decrease significantly for those who lived further away from the site, potentially falling to just a few hundred dollars for those at the settlement’s farthest reaches.

The plaintiffs’ attorneys commended the resilience of the East Palestine community and emphasized the collaborative nature of the settlement process. “This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of impacted residents and business owners,” they stated. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”

The train derailment, which happened on February 3, 2023, resulted in the rupture of tank cars containing hazardous chemicals, leading to extensive spills that ignited near the Ohio-Pennsylvania border. Following the incident, officials made the controversial decision to intentionally release and burn five tank cars filled with vinyl chloride—a move taken due to concerns over potential explosions.

Since the derailment, Norfolk Southern has dedicated $108 million for community assistance and has covered the significant cleanup costs, exceeding $1 billion in total. The railroad articulated its commitment to continuing support for the area with a message of partnership: “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.”

Residents like Tamara Lynn Freeze and her husband opted to accept the settlement despite their worries about relinquishing the right to sue if health issues arise in the future, such as cancer. Freeze remarked that navigating legal proceedings against the railroad alone would be an overwhelming prospect. Living just 175 yards from the derailment site, the couple now faces the difficult decision of whether to remain in their paid-off home or seek a more reassuring environment to continue their lives.