Judge approves $600 million settlement for residents near fiery Ohio derailment

Associated Press

A federal judge on Wednesday approved a $600 million class-action settlement that the Norfolk Southern Railroad offered to everyone who lived within 20 miles of last year’s disastrous derailment in East Palestine, Ohio.

Judge Benita Pearson gave final approval to the deal after a hearing in which attorneys who negotiated it with the railroad argued that residents overwhelmingly supported it, attorneys for the residents and the railroad spokeswoman Heather Garcia told the Associated Press. Around 55,000 claims have been filed. Only 370 households and 47 businesses withdrew.

Those who opposed the deal expressed concerns that the settlement would not be enough and that the deal was reached so quickly that they could not know what the potential health impact of the derailment would be . They say it’s difficult to know all the risks, given the way the test results were reported by the EPA and the fact that lawyers have not disclosed everything they learned during the their investigation.

Opponents hoped the judge would order the plaintiff’s attorneys to disclose tests conducted by their own expert after the derailment and address their concerns about a toxicologist who told them at one of the attorneys’ town meetings that they should not not worry because he didn’t. I don’t think anyone can develop cancer. That has angered residents who have been complaining of unexplained illnesses since the derailment and are talking with doctors who are conducting studies to try to determine what the health impacts will be. Experts say it’s too early to know the health impacts.

“These lawyers were intimidating people and telling them they would never get any money if they didn’t agree to this. People felt stuck,” said resident Jami Wallace.

The judge’s approval paves the way for payments to begin quickly. The lawyers previously said they hoped to receive the first checks in the mail before the end of the year.

As part of the settlement, any assistance residents receive from the railroad will be deducted from their final payments. Wallace and others who had to move for an extended period while the railroad paid for hotels or rental homes probably won’t get anything.

Anyone living within 2 miles of the derailment can receive up to $70,000 per household for property damage, plus up to $25,000 per person for health issues. Payments decrease as people live further from the derailment down to a few hundred dollars on the outskirts.

“This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of affected residents and business owners,” the plaintiffs’ attorneys said in a statement. “We look forward to beginning distribution of funds in the coming weeks to help this community rebuild and move forward.” »

When the train derailed late on February 3, 2023, tank cars filled with dangerous chemicals ruptured and spilled their contents which caught fire just outside the small town on the Ohio border with Pennsylvania. Then, three days later, authorities decided to unnecessarily open five tank cars containing vinyl chloride and burn the toxic plastic ingredient inside, fearing they would explode.

Since the derailment, the railroad has provided residents and the community with $108 million in assistance and funded the massive cleanup that cost more than $1 billion.

“We made a promise to make things right and this is just one part of that commitment,” the railroad said in a statement. “We remain committed to this community for the long term and look forward to continuing our relationship with the village as we work to help the area recover and thrive.”

Tamara Lynn Freeze said she and her husband ultimately decided to accept the deal despite their fears about giving up the right to sue even if someone ended up developing cancer. She said the idea of ​​one day having to go it alone against the railroad’s army of lawyers is daunting.

“It seems like everyone just wanted it to be over with. like lawyers and obviously Norfolk,” Freeze said.

She and her husband live in her childhood home, located about 175 yards (160 yards) from the site of the derailment. They will now decide whether to give up that paid-off house or find a place where they can feel comfortable planting a garden and living their lives normally again.