Judge approves $600 million settlement following violent Ohio train derailment

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

Judge Benita Pearson gave final approval to the deal after a hearing in which lawyers who negotiated it with the railroad argued that residents overwhelmingly supported it, attorneys for the residents and railroad spokeswoman Heather Garcia told The Associated Press. About 55,000 applications were filed. Only 370 households and 47 businesses opted out.

Those who opposed the settlement have been vocal in their concerns that the deal will not provide enough relief and that it was reached so quickly that they cannot know what the potential health impact of the derailment will be. They say it is difficult to know all the risks, given the way the test results were reported by the EPA and the fact that attorneys have not disclosed everything they learned during their investigation.

The judge’s approval clears the way for payments to be made quickly. Lawyers had previously said they hoped to receive the first checks in the mail before the end of the year.

Anyone who lived within 2 miles of the derailment can get up to $70,000 per household for property damage, plus $25,000 per person for health problems. The benefits decrease as people live farther from the derailment, to just a few hundred dollars in outlying areas.

“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,” the plaintiffs’ attorneys said in a statement. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”

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

Since the derailment, the railroad has provided $108 million in assistance to residents and the community and funded the massive cleanup. As part of the agreement, any assistance residents receive from the railroad will be deducted from their final payments.

“We promised to do 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.”