Judge approves $600 million settlement for residents near Ohio train derailment

A federal judge on Wednesday approved a $600 million class action settlement that Norfolk Southern offered to everyone who lived within 20 miles (32 kilometers) of last year’s disastrous derailment in East Palestine, Ohio.

Judge Benita Pearson gave the final approval after a hearing in which attorneys who negotiated it with the railroad argued that residents overwhelmingly supported it, attorneys for the residents and railroad spokeswoman Heather Garcia told The Associated Press. About 55,000 applications were submitted. Only 370 households and 47 businesses opted out.

Opponents of the deal have expressed concern that the deal will not provide enough and that the deal was finalized so quickly that they cannot know what the potential health impact of the derailment will be. They say it’s hard to know all the risks, given the way the test results were reported by the EPA and the fact that attorneys haven’t disclosed everything they learned in their investigation.

Opponents hoped the judge would order the plaintiff’s attorneys to release tests their own expert did after the derailment and address their concerns about a toxicologist who told them at one of the attorneys’ town meetings that they should not- and worry because I don’t think anyone will develop cancer. That has angered residents who have complained of unexplained illnesses since the derailment and have spoken to doctors conducting studies to try to determine what the health impact will be. Experts say it’s too early to know the health effects.

“These lawyers intimidated people and told them they would never get any money if they didn’t accept it. People felt backed into a corner,” resident Jami Wallace said.

The judge’s approval clears the way for payments to start rolling in quickly. Advocates have previously said they hope to receive the first checks in the mail before the end of the year.

As part of the settlement, any resident aid received from the railway will be deducted from the final payments. Wallace and others who had to move for an extended period while the railroad paid for hotels or rental homes likely won’t get anything.

Anyone who lived within 2 miles (3.2 kilometers) of the derailment can receive up to $70,000 per household for property damage plus up to $25,000 per person for health problems. Payments dropped the farther people lived from the derailment to a few hundred dollars at the outer edges.

“This outcome would not have been possible without the resilience and support of the East Palestine community and the wider class of affected residents and business owners,” the plaintiffs’ lawyers said in a statement. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”

When the train derailed late on February 3, 2023, tank cars full of dangerous chemicals broke open and spilled their contents, which caught fire just outside the small town on the Ohio-Pennsylvania border. Then, three days later, officials decided to needlessly open five vinyl chloride tank cars and burn the toxic plastic ingredient inside because they feared they would explode.

Since the derailment, the railroad has provided $108 million in assistance to residents and the community and paid for the massive cleanup that has cost more than $1 billion.

“We promised to make things right and this is only part of that commitment,” the railroad said in a statement. “We remain committed to this community for the long term and look forward to continuing our relationship with the Village as we work to help the area recover and thrive.”

Tamara Lynn Freeze said she and her husband ultimately decided to accept the settlement, despite their concerns about giving up the right to ever sue, even if someone eventually develops cancer. She said the idea of ​​one day having to go it alone against the railroad’s army of lawyers is daunting.

“It seems like everyone just wanted it to be over. as lawyers and obviously Norfolk,” Freeze said.

She and her husband live in his childhood home, which is about 175 yards (160 meters) from the site of the derailment. They will now decide whether to give up that paid off house or find a place where they can feel comfortable planting a garden and living life as normal again.

Photo: A view of the scene Friday, Feb. 24, 2023, as cleanup continues at the scene of the derailment of a Norfolk Southern freight train that occurred Feb. 3 in East Palestine, Ohio. (AP Photo/Matt Freed)

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Ohio Legislation