Class counsel: Some claimants want their cake and to eat it too
EAST PALESTINE — The attorneys who represent residents and who helped broker last year’s $600 million class action settlement with Norfolk Southern joined the railroad in arguing against the request by 100-plus of those residents to be let out of the agreement.
Residents unhappy with the deal accused class counsel of among other things fraud and concealing the true extent of the contamination from the chemicals spilled during the 2023 train derailment earlier this month in a motion filed in Youngstown’s US District Court.
In answering the motion, class counsel denied the allegations of fraud and concealment of reports regarding the impacts of the derailment on both the environment and public health and called the motion “nothing more than an improper repetition of objections already overruled by the court.”
Reasons cited by the residents who want out of the personal injury portion of the settlement – or movants – are the same concerns brought up as objections before final approval was granted over a year ago. U.S. District Judge Benita Pearson overruled all 84 of those objections which also included claims that class counsel withheld or suppressed evidence, that the personal injury payments were not high enough and the settlement did not adequately compensate class members for their damages. Pearson further ruled that all class members who objected to the settlement but did not opt-out were bound by the terms of the settlement.
Class counsel also argued in its recent answer that a handful of those now opposing the settlement — 13 by their count — have already been paid.
“The 13 movants are seeking to have their cake and eat it too,” class counsel wrote.
The attorneys also disputed the residents’ claim that they played down the true impact the derailment could have on public health.
“Contrary to movants ‘ position, class counsel has always recognized the possibility of health risks because of the derailment,” they wrote. “The very existence of the voluntary personal injury payment makes it clear that class counsel and Norfolk Southern recognize that potential.”
Residents claimed class counsel minimized the health implications during a zoom meeting in August of 2024 when Dr. Arch Carson spoke to residents. Carson told those on the zoom meeting that he believed the chemical exposure was so minuscule that the risk of “any kinds of cancers or other health effects” was practically nonexistent and “that people [in East Palestine and other impacted communities] are going to be safe in the long term.”
It was during the same Zoom meeting, that residents were promised personal injury payments within 30 days of final approval. Over a year later, the majority of those who opted into the personal-injury component are still waiting for any compensation.