Court approves $600M East Palestine settlement
(The Center Square) – Nearly 20 months after a Norfolk Southern train derailment pushed the small eastern Ohio community of East Palestine into the national spotlight, a federal judge approved a $600 million settlement.
The settlement covers residents, property owners and businesses within 20 miles of the derailment site and subsequent chemical release that happened Feb. 3, 2023.
Court-appointed attorneys Seth A. Katz, M. Elizabeth Graham and Jayne Conroy said funds will be distributed in the next few weeks.
“This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of impacted residents and business owners. We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward,” the attorneys said in a statement.
The settlement calls for personal injury payments of $25,000 for those within 2 miles of the derailment and about $1,000 for those 5-10 miles away.
Also, those within 2 miles of the site are scheduled to receive $70,000 per household in direct payments, lowering by distance to about $250 per household for those from 15-20 away from the derailment site.
The approval comes nearly three months after attorneys said less than 1% of the nearly 200,000 households involved in the derailment settlement opted out of the deal.
The settlement is separate from the U.S. Department of Justice’s $310 million settlement with Norfolk Southern. That deal came before last month’s National Transportation and Safety Board’s final report.
U.S. Sen. J.D. Vance, R-Ohio, called that deal premature and said there is a need for railway safety legislation immediately.
At a public hearing in June in East Palestine, National Transportation and Safety Board Chairwoman Jennifer Homendy called Norfolk Southern’s attempts to sway the investigation unprecedented and reprehensible.
She reiterated the board’s finding that the eventual vent and burn following the crash was unnecessary, and the report said the crash could have been avoided.
It blamed the crash that forced the evacuation of more than 2,000 residents on the wheel bearing of rail car 23, which caught fire, causing the axle to fall off and derail the train.
The final report confirmed initial findings released in February and previously reported by The Center Square.
