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Attorney warns East Palestine residents settlement money falls short

Independent scientist Scott Smith discusses what he says is flawed environmental testing methods by the EPA to determine the extent of contamination in the wake of the 2023 train derailment during a town hall held at the Columbiana Best Western on Tuesday. (Photo by Stephanie Elverd)

COLUMBIANA — Standing before a crowd of residents still grappling with the fallout of the 2023 Norfolk Southern train derailment, attorney Mindy Bish said she has watched East Palestine argue online about compensation, responsibility and justice. But what struck her most when she arrived at Tuesday’s town hall at the Columbiana Best Western — an event that doubled as a coat drive — was something else entirely.

“I read on Facebook all the arguments, right? And then I show up and you all brought coats, and nobody is taking them,” Bish told the audience. “And I wonder which one you all really are — the people fighting over the scraps that Norfolk Southern wants to give you, or the people who bring coats and no one takes them. It’s interesting to me.”

The coat drive, she said, was intended to support residents still struggling in East Palestine. But instead of people arriving for help, the community showed up with donations.

“The people I thought would be taking the coats were the ones bringing them,” she said.

Updates on the lawsuit

The town hall served to update both clients and non-clients on the litigation filed by Keenan Law on behalf of nearly 800 residents in Columbiana County Common Pleas Court earlier this year. Independent scientist Scott Smith returned to present new environmental testing results, Bish discussed a motion to intervene in the federal settlement between the U.S. Department of Justice and Norfolk Southern and a property-damage expert told attendees that insurance claims may still offer an exit for residents who want to leave homes they believe are contaminated.

Bish, a managing partner at Keenan Law, also cautioned residents that while the proposed $600 million settlement sounds large — and would be the biggest civil payout in railroad history — the money would not stretch far.

Bish’s lawsuit alleges the remaining defendants failed to protect the public or warn about the dangers of hazardous chemicals released during and after the derailment and misled residents about symptoms and health effects linked to chemical exposure.

The complaint includes allegations of nuisance, strict liability, trespass, punitive damages, loss of consortium, Medicaid subrogation and wrongful death. It states that seven residents — Margie Mae Lewis, Margo Zuch, Randy Swogger, John R. Moore, Viola Noel, Edward Zins and Carlyn Tigelman — died as a result of chemical exposure connected to the derailment.

Settlement funds “not enough to go around”

According to Bish, court documents show how the $600 million settlement is divided — and how little most households will receive once fees and caps are applied.

After nearly $180 million in attorneys’ fees and expenses, roughly $421.7 million would remain. Of that, $25 million is set aside for business claims and $129 million is capped for personal-injury claims, leaving about $267.7 million for property-damage payments.

“That averages out to $2,490.79 per household,” Bish said. “And that assumes everybody is close in — which we know is not the case, but they estimated that from 0 to 10 miles, there were 21,160 claims. I am not a genius, but there isn’t a chance any of you are getting close to $70,000. Not a chance.”

Property-damage claims raised as potential exit

A Louisiana-based insurance attorney told residents that property-damage insurance claims may provide a path for families who want to leave homes they believe were poisoned by the derailment.

“All I do is property-damage claims where there is insurance involved,” said Galen Hair, founder and owner of Insurance Claim HQ. “It sucks what you people are dealing with, and I know some of your carriers are not treating you fairly. That’s something we are available to talk to you about. I live in Louisiana, but we do this around the country and we have an office in Columbus so we are not complete strangers with you all.”

Bish said Hair, who launched his firm after Hurricane Katrina and has handled more than 1,200 property-damage cases, is working with families seeking a way out.

“Galen is part of the process of trying to get you out of homes you don’t want to be in with insurance claims,” she said.

Standard homeowners insurance covers sudden, accidental property damage — fire, smoke, wind, hail, falling objects and some storm-related losses — but not long-term contamination, pollution, floods or earthquakes. Residents said that leaves them trapped in homes devalued by the derailment.

One woman asked what recourse exists for homeowners who already lost their properties.

“What happens now because someone else is living in our poisoned house?” she asked.

“It is not too late,” Hair responded. “It’s not true that you don’t have a claim. You’ve been lied to.”

Motion to intervene in federal case

Bish also announced that a motion to intervene has been filed in the $315 million federal settlement between the U.S. Department of Justice and Norfolk Southern. The motion was submitted Monday on behalf of local business owner Robert Figley and resident Barbara Adams.

Figley reported financial losses, increased operating costs and diminished property value. Adams, who lives five miles from the derailment site, has experienced severe health issues — including cancer diagnoses — that she attributes to chemical exposure.

The motion argues that the proposed consent decree between the government and Norfolk Southern is inadequate. Under the agreement, Norfolk Southern would pay a $15 million civil penalty and fund a $25 million community health program, which residents say is too small and too geographically limited to meet long-term needs.

Figley and Adams are seeking intervention under the Clean Water Act and CERCLA, which grant citizens the right to participate in enforcement actions. They aim to ensure comprehensive cleanup, long-term environmental monitoring, and fair compensation for the community.

Disputes over environmental testing

Independent scientist Scott Smith said the environmental contamination is far more extensive than the EPA acknowledges. He accused the EPA of relying on data collected by Norfolk Southern contractors and of failing to test for chemicals it should have.

“You can’t find what you don’t look for,” Smith said, adding that he believes the EPA used contaminated areas as “background samples” in its dioxin analysis.

Smith said his own tests and others show widespread contamination.

“We will take care of each other”

Bish returned to the theme of community care throughout the town hall.

She urged residents to support one another and said her team wants to know what families need this Christmas.

“I don’t care if your child is 9 years old or 29 years old — tell me what you need, and we will get it for you,” she said. “I know you have had fundraisers in the past, but I don’t want you to waste time being disappointed. We will take care of each other.”

selverd@mojonews.com

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