Norfolk Southern has reached an agreement with OxyVinyls regarding the financial responsibility for a $600 million class-action settlement. This settlement stems from the catastrophic train derailment in Ohio in 2023, which led to the release and combustion of toxic chemicals. The agreement between the railroad and the chemical company, OxyVinyls, does not alter the amounts individuals will receive from the settlement. It also does not impact any payments designated for the village of East Palestine or other parties, as those figures are already determined through various settlement agreements. The focus of this case is solely on which companies are responsible for funding the class-action settlement, distinct from the expenses related to the extensive environmental cleanup.
The settlement was announced amidst an ongoing trial that is determining financial accountability for those affected by the derailment in East Palestine, Ohio. While the two companies issued a brief statement regarding their agreement, they did not disclose any specific details. Meanwhile, GATX, the third company involved in the lawsuit and the owner of the railcar implicated in the derailment, opted not to comment. The trial, which commenced late last month, is expected to advance to the jury’s consideration next week.
Residents affected by the derailment are awaiting the bulk of their settlement funds due to pending appeals, although some payments have begun to be distributed. The derailment incident involved a spill and subsequent fire of various chemicals. In a preventive measure, officials deliberately breached five tank cars filled with vinyl chloride three days post-derailment, fearing potential explosions. This action resulted in a significant release of smoke and prompted evacuations in the area. The potential health impacts of the derailment remain a significant concern for the local population.
The National Transportation Safety Board’s investigation revealed that the decision to vent and burn the tank cars was unnecessary, as the cars were cooling down. The board also noted that Norfolk Southern did not heed advice from OxyVinyls’ experts nor shared their insights with decision-makers. During the trial, Norfolk Southern challenged the consistency of information provided by OxyVinyls, both onsite and from headquarters, during the discussions on whether to release and burn the vinyl chloride.
Norfolk Southern maintains that OxyVinyls should bear some financial responsibility, citing the provision of inconsistent and inaccurate information regarding the vinyl chloride prior to the decision to burn it. Previously, Norfolk Southern lost a similar case when it attempted to compel GATX and OxyVinyls to contribute to the environmental cleanup costs, which have exceeded $1 billion. The ongoing trial reiterates the railroad’s stance in seeking financial assistance for the class-action settlement.
