Settlement will release long list of parties
Average payout near ground zero projected at $70K
EAST PALESTINE — As the Northern District Court of Ohio considers a motion filed by plaintiffs attorneys Friday, requesting the preliminary approval of a $600 million settlement reached with Norfolk Southern in the wake of last year’s train derailment, more details of that agreement are being revealed in documents filed with Judge Bentia Peasrson.
According to the memorandum in support of preliminary approval, residents who opt-in are not only releasing Norfolk Southern of additional liability but also releasing the other defendants named in the class action lawsuit of liability.
Those other third-party defendants include Oxy Vinyls (owner of the vinyl chloride that was intentionally released), GATX Corporation (owner of the tank cars that held the vinyl chloride), General American Marks Company (owner of hopper car on which the hot wheeling failed) and Trinity Industries Leasing Company (the owner of another hopper car).
“As set forth in the Settlement Agreement, Norfolk Southern has agreed to a total payment of $600 million to the settlement class in exchange for a release extinguishing all liability for claims that were or could have been asserted in the master complaint as to Norfolk Southern arising out of, or relating to the incident,” the memorandum states. “This includes a release of all plaintiffs’ claims that were or could have been asserted in the Master Complaint against Oxy Vinyls, GATX Corporation, General American Marks Company, and Trinity Industries Leasing Company.”
On the other hand, the agreement still allows Norfolk Southern to seek damages against all three companies.
“While the proposed Settlement would extinguish all of plaintiffs’ claims against all defendants, Norfolk Southern’s contribution claims against Oxy Vinyls LP, GATX Corporation, General American Marks Company, and Trinity Industries Leasing Company are expressly preserved under all applicable law,” it states.
Norfolk Southern has repeatedly maintained that the owners of the railcarand the chemicals released bear some responsibility for the Feb. 3, 2023 derailment and should share in the financial burden it caused. In March, the Northern District Court of Ohio ruled against Norfolk Southern in a suit seeking to share cleanup costs with car owners and OxyVinyls, but he agreement allows the railroad to pursue recouperation related to the settlement itself.
Exhibit A of the filed motion is the complete agreement that is awaiting preliminary approval. That document expands the list of a “released parties.” Those parties include including Norfolk Southern contractors Arcadis and CTEH (the companies handling the environmental remediation), SPSI (another NS contractor that was the middleman between OxyVinyl and Incident Command when the decision to vent and burn was made, HEPACO (another remediation contractor).
Aside from expanding on the relased parties, Exhibit A — which also includes a copy of the settlement’s claim form — also gave an idea of how each resident stands to get from the $600 million, which will be closer to $400 million after attorney fees and expenses are subtracted. According to that form, property damages within two miles miles from derailment site will average $70,000. Other amounts listed were $45,000 (2-4 miles), $30,000 (4-7 miles), $15,000 (7-10 miles), $500 (10-15) and $250 (15-20). Examples were also given for “potential, average payment amounts based on proximity to East Palestine for individuals that submit a claim for personal injury payment (residents within 10 miles that show a potential link between health impacts and the derailment) were $10,000 or lower with $5,000 within five miles and $1,000 within 10.
The form does offer the possibility of a larger payout for “extraordinary claims” for both property and personal injury damages but those claims must be supported by “dated documentation” and a “detailed review of these claims” will be conducted.
selverd@mojonews.com