Norfolk Southern settlement not meant to ‘make people whole:’ Lawyer

EAST PALESTINE, Ohio (NewsNation) — Norfolk Southern has agreed to a $600 million settlement in a class action lawsuit relating to the East Palestine, Ohio, train derailment in February 2023.

The rail company announced the agreement in a news release Tuesday morning, saying if the courts accept the settlement, all class action claims within a 20-mile radius of the derailment will be resolved.

“This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities,” the news release said.

Norfolk Southern says this settlement is not an admission of guilt or liability but rather furthers the work the company has done to help right the wrong in East Palestine. The rail company spent over $1.1 billion in 2023 related to the derailment, according to its 2023 annual report for investors.

East Palestine settlement reaction

Former East Palestine resident Jami Wallace, who also serves as president of the town’s unity council, told NewsNation she is unaware of any settlement discussions.

“I haven’t signed up for a lawsuit yet,” she said Tuesday on “NewsNation Live.” “Only because I’ve been focused on the human health aspect.”

Regardless, Wallace called into question what each resident will receive legal fees and taxes are taken into account.

“What are the residents getting for the continuing exposure? It’s not like this happened and it’s over,” Wallace said. “We still have not had our homes tested, we have not had residential soil tested, and Norfolk Southern’s plan to clean up our creeks that finally got started two weeks ago was a disaster.”

While the amount may sound significant, it averages out to about $6,000 per resident, as up to 100,000 people who live in the area are eligible for some kind of payment.

Lead counsel on the deal, Jayne Conroy, told NewsNation’s Rich McHugh it is a “great result.”

“Compensation will include loss of property value, the cost of having to evacuate or take particular measures with your home,” she said. “If your kids had to change schools, all those issues will be explored as we talk to individual claimants, and there’s no one that will be left out if they’re eligible.”

Some residents were in tears as they heard the news, one calling it a “corporate price tag” for a disaster.

Conroy said people need to recognize that both the federal and Ohio EPA are looking to hold Norfolk Southern responsible for the costs of cleanup, and the settlement isn’t intended to make people financially whole but to compensate for what they’ve been through.

“The contamination, which is a variable in the cleanup, which is a very long process, that’s not a part of this settlement,” she said. “So people may feel differently when they understand that this is not intended to solve the whole problem. This is intended to compensate individual households that were impacted by the derailment.”

What happened in East Palestine?

On Feb. 3, 2023, a Norfolk Southern train carrying hazardous chemicals derailed in the small Ohio community.

Some 1,500 residents were told to evacuate following the crash. Fearing an explosion, officials decided to vent and burn five tank cars, releasing 116,000 gallons of the carcinogen vinyl chloride into the air. Later, a toxic plume of smoke smothered the region.

However, three days later, the Environmental Protection Agency said it had not detected contaminants at “levels of concern” and gave the all-clear for residents to return.

Residents of East Palestine complained of rashes and sickness. They’ve also criticized the government for downplaying their concerns that their community is no longer safe to live in.

Controlled burn was unnecessary: NTSB

Last month, National Transportation Safety Board Chair Jennifer Homendy testified before the Senate that the controlled burn and explosion set off in the wake of the derailment could have been avoided.

Several pieces of necessary information were not shared with state and local leaders who decided to vent and burn five tank cars after being advised by Norfolk Southern contractors at the scene of the crash that it was their only option. 

“They were provided incomplete information to make a decision,” Homendy said. 

An investigation by the NTSB found that Gov. Mike DeWine, East Palestine Fire Chief Keith Drabick and several other officials were told they had minutes to decide whether to vent the train cars or wait and risk an uncontrolled explosion.

“There was another option: Let it cool down,” she said. 

The controlled burn contaminated the air, water and soil in East Palestine, and even one year after the derailment, many of the town’s residents say they still suffer from health issues. 

Residents plagued with health issues

The problem is that initial EPA and Norfolk Southern testing done at the derailment site showed the presence of dioxins, the most carcinogenic compounds on the planet, but officials did not test any of the residents’ health.

Independent testers who visited East Palestine examined the environment and people. Some tested the soil, others the water in local creeks and air filters in homes around the derailment site. The independent testing has shown evidence of toxins in the soil, air and water.

Residents have been diagnosed with vinyl chloride in their blood and complained of respiratory issues.

Many in East Palestine felt the government and its agencies were ignoring their concerns. Residents fought for their case to be heard both on the state and federal level, even calling on the president for assistance.

It was not until a year later that President Joe Biden visited the derailment site, which residents say frustrated them more than addressed their concerns.

Earlier this month, it was also revealed that the EPA decided not to declare a public health emergency following the derailment despite having the legal authority to do so.

Fallout continues in East Palestine

Wallace told NewsNation there was another open flow of chemicals in the town creek recently and that the workers didn’t even stop it when they saw the chemicals flow downstream.

Since the most recent spill, the EPA said it was unacceptable and stopped its work until officials could come up with a different plan that wouldn’t result in further damage.

“These mistakes are our children’s lives,” Wallace said. “People are not happy at all.”

Wallace explained that there have been no studies on what multiple chemical exposures can do to the human body at lower than reportable levels.

“So, when do they start listening to the people?” Wallace asked. “If the science isn’t there, look at our bodies. Look at our children who are covered in rashes. Look at the people still having nosebleeds and constant migraines. If you can’t follow the science, when do they listen to the people?”

This isn’t the first time residents have felt their concerns have been ignored and pushed under the rug. Since the day of the derailment, East Palestine residents have been reporting unusual health effects they fear could be related to the chemical contamination.

“We’ve shown all this, and absolutely nothing has been done. This is the year of action. We needed action then, and we definitely need action right now,” Wallace said. “We’re not waiting any longer.”