Norfolk Southern Ohio train derailment payout trial begins

The trial to decide if two companies should reimburse Norfolk Southern for the $600 million class-action settlement in the 2023 derailment in East Palestine, Ohio, began Monday.

Norfolk Southern agreed to the settlement. However, the railroad company is seeking that two companies, Oxy Vinyls, a leading chemical manufacturer, and GATX Corp., a railcar lessor, contribute to the multimillion-dollar payout.

U.S. District Judge Benita Pearson approved the settlement and a 27 percent fee for attorneys last year. She will oversee this trial.

Should the jury side with Norfolk Southern, the settlement amount would not be altered. The rail company is still responsible for the payout, but it would be compensated by the two companies.

Norfolk Southern’s attorneys stated in the court filings, “Despite obtaining valuable releases under Norfolk Southern’s settlement with the class, GATX and OxyVinyls have yet to contribute anything to that settlement or to the class at all."

The lawyers continued, "The evidence presented at trial will establish that both GATX and OxyVinyls acted negligently and that Norfolk Southern is entitled to contribution from each.”

NewsNation reported in September 2024 that the hefty settlement was ill-received after the judge's decision in court by some East Palestine residents due to concerns following an analysis by The Associated Press of how the Environmental Protection Agency handled the contamination data and cited a lack of transparency to residents.

Jami Wallace, a then-East Palestine resident, exited the courtroom calling the judge's decision "a sham."

In February, Wallace told "NewsNation Now" that the "creeks are still contaminated."

"The only thing changing is people’s symptoms are actually going to longer-term illnesses," she sed, while pleading for help for the East Palestine residents impacted by the toxic spill from the train derailment.

Officials burned 116,000 gallons of vinyl chloride, a hazardous substance and a suspected carcinogen, to prevent explosions three days after the accident. Officials later said that was unnecessary.

Since then, residents have reported illnesses and water quality concerns.