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Personal injury payments could be coming soon, letters being mailed out

EAST PALESTINE — Class members who opted in to the personal settlement component of the $600 million class action settlement with Norfolk reached in April to remedy damages caused by last year’s train derailment and chemical release can expect to receive determination letters from Kroll Settlement Administration in the mail soon.

According to the website eastpalestinetrainsettlement.com — set up by plaintiff council after the deal was brokered — the letters will provide the exact amount of the award each class member will receive as well as instructions to set up direct-deposit for the amount which was determined using the weighted-allocation formula approved by the court.

Some residents have already reported receiving determination letters, though no receipt of funds has yet been confirmed.

The letters are in regards to personal injury damages only as direct payments (or property damages) have been paused as the appeal process plays out. The personal injury payments were not subject to appeal, and while determination letters are expected to be sent out through the end of the year and deposits to begin soon, class members were initially told personal injury payments would be disbursed within 30 days of final approval which was later granted on Sept. 25.

If a claimant feels the amount disclosed in the determination letter is not sufficient, there is an avenue of recourse.

“If the settlement class member does not agree with the amount of the personal injury payment, an appeal may be submitted by completing the Affirmation and Certification page enclosed with the letter,” the website states.

Those who wish to expedite payment using ACH deposits can follow directions included in the letter to do so. If an ACH deposit is not requested, class members can schedule an appointment to pick up a check. Those checks will be available at the Settlement Center located at 191 E. Rebecca St., East Palestine.

“You may schedule an appointment to pick up your personal injury payment only if you received a personal injury payment letter,” the website stressed.

The award amounts reported by residents who have already received determination letters have differed wildly. Some report amounts as low as $600 with others reporting amounts close to the $25,000 that was touted by co-counsel during a zoom meeting with class members over the summer.

According to the settlement website, the personal injury component “assumed that everyone physically present within 10 miles of the derailment was qualified to receive an additional payment for personal injury in exchange for a release of these claims.”

Personal injury claims were open to those who lived or worked within 10 miles of the derailment site. Originally, the personal injury component allowed for up to $10,000 per individual closest to “ground zero.” In July, lead counsel announced that amount had more than doubled to $25,000 for those within two miles. Personal injury estimates for other distances from the derailment site also increased — three to five miles ($15,000), five to seven ($5,000) and seven to 10 ($2,000).

The Plan of Distribution filed with the approval motion explained that a base of 100 points equivalent to one $25,000 share is assigned to each personal injury claim. The “base case” is therefore entitled to $25,000 per person with increases or decreases from the “base case” depending on a number of factors referred to as “multipliers.”

Eight factors (some with subfactors) are considered — location from derailment site, location direction from derailment site, timing of physical presence in impacted areas, age at the time of the derailment, if symptoms were experienced, the seriousness of symptoms, medical treatment received and if a diagnosis was given by a physician.

If a class member previously received any compensation directly from Norfolk Southern to cover medical-related costs (chest x-rays or blood work for example), the amount received will be deducted from the final personal injury award.

The direct payments (or property damages) have been halted by an appeal against the final approval filed in United States Court of Appeals for the Sixth Circuit by four class members — Zsuzsa Troyan, Tamara Freeze, Sharon Lynch and Carly Tunno — after Judge Benita Pearson signed off on the settlement in Youngstown’s U.S. Northern District Court. Joseph Sheely also appealed the ruling but has since stated it was not his intention to do so.

“The personal injury payment is separate and apart from the direct payment claim,” the settlement website clarified. “Payment in connection with direct payment claims are currently pending appeal and will be handled at a later date, once the status of the appeal has been determined.”

It could take upwards of two years or longer for the appeal process to play out and the household payments (which could be as high as $70,000 for addresses within two miles of the derailment site) to be distributed. In an effort to shorten that process, the attorneys who brokered the settlement filed motion asking that any appeal be subject to an appeal bond of $850,000 pursuant to Rule 7 of the Federal Rules of Appellate Procedure. In other words, nearly $1 million would have to be posted as a financial guarantee by an appellant ( or the party appealing) to cover court costs if the appeal is lost.

Over 55,000 claims were filed by the Aug. 22 deadline to receive a piece of the settlement with the majority of those filing for property damages or direct payments. Property damage eligibility was open to households and businesses up to 20 miles away from the derailment site.

Starting at $2.99/week.

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