Appeal delays $600 million class action settlement in Fiery Ohio derailment

Regulatory reviews of Norfolk Southern’s disastrous 2023 derailment could be delayed for up to two years now as an appeal was filed against a federal judge’s decision last week to approve the $600 million settlement, they said lawyers in this case said.

Many residents of East Palestine, Ohio, expressed outrage at the call because it would delay payments they were relying on to help them recover from the toxic train crash that disrupted their lives when it dumped dangerous chemicals into their community. Some people had planned to use the money to move.

Townspeople who are frustrated they won’t get their money right away attacked the Reverend Joseph Sheely and began threatening him and his wife on Monday because his name is on the appeal. Sheely contested the settlement this summer, but said he specifically asked his attorney to exclude him from any appeal and that he did not want to participate in it. He said that given the serious health concerns he and his wife have developed since the derailment, they can no longer tolerate the stress of being at the center of the case.

“I was trying to do something for the people of East Palestine, including myself,” Sheely said. “But they don’t seem to want anyone to do anything. They just want the money. And so we are done. I’m completely done.”

Attorneys for the plaintiffs had hoped to start sending the first checks before the end of the year, but that won’t happen because the 6th Circuit Court of Appeals will first have to address concerns about whether the settlement provides enough compensation and whether residents have enough data to decide if it is correct.

“We will do everything we can to resolve this appeal expeditiously and prevent any further burdens on local residents and businesses who want to move forward and rebuild their lives,” attorneys for the plaintiffs said in a statement. “It’s tragic that one person is substituting their judgment for the entire community that wants this settlement, and instead of giving up, they took this path.”

Lawyers estimated the payments would be delayed for at least six to 12 months while the appeals court considers the appeal, which was filed Friday, but they could be delayed even longer if the case is appealed to the U.S. Supreme Court. USA or sent back for further procedures. in Judge Benita Pearson’s court.

Sheely’s lawyer, David Graham, said the statement from the plaintiff’s lawyers only served to put more pressure on his client and fueled the threats.

“Their reckless statements put my client in danger and make my client feel unsafe in his own community,” Graham said.

The settlement offered payments of up to $70,000 per household for property damage and up to $25,000 per person for injuries to those living within two miles of the derailment. Payments would drop significantly further, with only a few hundred dollars offered to people living closer to the 20-mile (32-kilometer) distance limit.

The appeal will not increase the $162 million in legal fees and $18 million in costs the judge awarded the plaintiff’s attorneys last week, unless the settlement is overturned and new fees are awarded as part of the case .

Residents post on ‘East Palestine off the rails!’ The Facebook group accused the pastor who filed the appeal of being greedy, as one of his objections to the deal is frustration that any payments residents received from the railroad since the derailment to relocate or temporarily replace damaged property would be deducted from any settlement I receive. Some have characterized this as a desire to be compensated twice for the derailment.

But the few who opposed the deal said they had deeper concerns. They said they don’t know the full extent of the chemicals they were exposed to because the plaintiff’s attorneys have refused to disclose what their expert found when he tested the city and because the Environmental Protection Agency isn’t disclosing everything it knows about it. extent of persistent contamination.

The eastern Palestinian city remains deeply divided over the derailment, with some residents eager to move on and put the disaster behind them, while others still dealing with unexplained health problems see no way to do so. Litigation over the appeal in the class action only adds to the divisions.

Photo: FILE – A black plume rises over East Palestine, Ohio, following a controlled detonation of a portion of derailed Norfolk Southern trains, Feb. 6, 2023.

Copyright 2024 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

TOPICS
Ohio Lawsuits