EAST PALESTINE — Norfolk Southern continues to maintain it compensated East Palestine Schools for any and all damages caused by the 2023 train derailment, according to the latest court filings in the case brought against the railroad by the district.

In a response filed last week to the district’s reply to Norfolk Southern’s partial motion to dismiss and motion to strike, the railroad also accused the district of failing to provide documentation of actual losses suffered as a result of the rail disaster.

“Norfolk Southern has consistently expressed its willingness to reimburse the district for actual, substantiated expenses incurred by the district — such as those related to personnel, supplies, and use of facilities following the derailment — provided that appropriate documentation is supplied,” attorneys for Norfolk Southern argued. “To date, substantiation has been a recurring issue. Indeed, previously noted, Norfolk Southern has already compensated the district for certain items of alleged property damage, in addition to numerous significant donations.”

That compensation, according to the railroad, included $300,000 to directly support the district’s academics, athletics, and extra-curricular activities, a $750,000 gift (used to fund a public relations position within the district) to promote community engagement, over $150,000 for work repair the high school track and the elementary school parking lot and other contributions totaling $150,000.

“Despite these efforts, the district now seeks more,” last week’s filing said. “While not stated specifically in the complaint, the district appears to seek millions of dollars in damages based on alleged losses in tax revenue and income that it concedes have not yet materialized. It also purports to seek tens of millions of dollars based on an alleged gratuitous promise to fund a community center project, which the district admits was never memorialized in writing.”

The law firm Peiffer Wolf Carr Kane Conway & Wise filed a multi-million dollar lawsuit against Norfolk Southern on the district’s behalf on April 30 for what superintendent James Rook called “broken promises” and what the board of education claims the railroad failed to do following the 2023 train derailment and chemical release.

At the heart of the suit is whether or not Norfolk Southern should be compelled to follow through on a proposed $30 million wellness center and the relocation of school athletic facilities — a concept Rook said was completely initiated and promised by Norfolk Southern.

Norfolk Southern asked a federal court to toss out the bulk of the East Palestine City Schools lawsuit against the railroad in June. In its partial motion to dismiss the district’s complaint, the railroad asked that claims of loss of property tax revenue based on anticipated diminished home values, loss of income tax revenue, inducing panic through disorderly conduct, breach of contract and promissory estoppel — to enforce the railroad follow through on the community wellness center — be dismissed.

In last week’s filing, Norfolk Southern doubled down all its partial motion to dismiss, asserting that Ohio law makes clear that alleged loss of tax revenue is a speculative and indirect economic loss that cannot be recovered, the statute of frauds bars any claim related to the its wellness center as well as the inducement of panic claim, nothing supports the district’s claim that an oral contract existed for the construction of the center, promissory and estoppel damages cannot be remote or speculative — in other words the district suffered no financial losses as a result of the railroad deciding against the wellness center.

Norfolk Southern also reiterated its request that the court strike all references to the National Transportation Safety Board’s (NTSB) investigation into the rail disaster and its final report. Again citing federal law that allows for no part an NTSB investigation may be admitted into evidence or used in a civil action for damages resulting in matters mentioned in an NTSB report.

“Norfolk Southern’s partial motion to dismiss appropriately targets claims that are either insufficiently pleaded or not cognizable under Ohio law,” last week’s filing said. “Dismissing these meritless claims will allow the litigation to focus on the actual, documented impact of the derailment, rather than speculative or fanciful allegations that do not provide a valid basis for recovery under controlling law.”

selverd@mojonews.com