Norfolk Southern Seeks Financial Support for $600 Million Class-Action Settlement Following 2023 Train Derailment
Norfolk Southern is pursuing compensation from two companies in connection with a $600 million class-action settlement related to a catastrophic train derailment that occurred in 2023 near the Ohio-Pennsylvania border. The railroad argues that GATX, the railcar owner, and chemical manufacturer OxyVinyls share liability for the incident, which led to the release and burning of toxic chemicals.
In a motion set to be heard in court, Norfolk Southern is requesting that GATX and OxyVinyls contribute to the settlement costs, indicating that they hold partial responsibility for the February 3 derailment in East Palestine, Ohio. This legal action will not alter the financial compensation residents are expected to receive, as those amounts have been established in prior settlement agreements.
Currently, residents await the majority of their settlement payments, as appeals are ongoing, although some funds have begun to be distributed. The derailment resulted in a significant chemical spill and subsequent fire. Emergency measures were taken three days post-incident when officials decided to vent five tank cars containing vinyl chloride due to concerns that they could explode, leading to widespread evacuations.
Local residents continue to express anxiety over the potential long-term health impacts from the chemicals involved in the derailment. This incident marks one of the most severe rail disasters since the catastrophic derailment in Lac-Mégantic, Canada, in 2013, which resulted in 47 fatalities and heightened scrutiny on rail safety regulations.
Norfolk Southern had previously encountered a similar legal challenge last year but was unsuccessful in its bid to make GATX and OxyVinyls partially responsible for the environmental cleanup costs, which have surpassed $1 billion for the company.
The railroad emphasized its position, stating, “Norfolk Southern alone has paid the costs relating to the derailment despite ample evidence that other parties share in the responsibility.” It asserts that the trial will underscore the accountability of shippers and railcar owners in transportation safety.
Norfolk Southern does not own the majority of the railcars it transports and contends that all parties involved in the shipment of hazardous materials have a regulatory obligation to ensure safety. The railroad claims that GATX is partly to blame for the derailment due to the failure of a railcar filled with plastic pellets, which was linked to an overheating bearing.
Moreover, Norfolk Southern alleges that OxyVinyls provided misleading information concerning the safety of vinyl chloride, which affected the decision-making process for handling the chemical. In response, both GATX and OxyVinyls have denied any culpability, highlighting that Norfolk Southern operated and inspected the train and was ultimately responsible for cargo delivery.
GATX maintains that it followed all necessary regulations concerning its railcar maintenance and argues that any past issues with the railcar should fall under Norfolk Southern’s responsibility. According to the National Transportation Safety Board, the derailment was triggered by an overheated bearing on GATX’s car, which was detected shortly before the incident.
The trial is expected to take place over two to three weeks, with significant implications for liability and accountability in the aftermath of one of the nation’s most serious rail crises.
