Ohio Train Derailment: Why Community Turned Down $600 Million Settlement

Fewer than 400 households reject $600 million settlement for Ohio train derailment, raising questions about compensation adequacy.

At a Glance

Only 370 households and 47 businesses opted out of the $600 million settlement
The settlement covers property damage within a 20-mile radius of the derailment site
Residents closest to the crash were promised $70,000 for property damage
97% of residents agreed to waive future lawsuits for serious ailments
Concerns persist about long-term health effects and environmental contamination

Settlement Details and Community Response

In the aftermath of the February 2023 train derailment in East Palestine, Ohio, a proposed $600 million settlement negotiated with Norfolk Southern has encountered a mixed response from the affected community. While the majority of households have accepted the terms, a small but significant number have opted out, highlighting ongoing concerns about the long-term impact of the disaster.

According to recent reports, only 370 households and 47 businesses within a 20-mile radius of the derailment site have rejected the property damage payments offered in the settlement. This represents a small fraction of the 54,925 claims filed by the August 22 deadline. The settlement structure provides varying levels of compensation based on proximity to the crash site, with those closest promised up to $70,000 for property damage.

Fewer than 400 households reject $600 million Ohio train derailment settlement https://t.co/kj6qv4Rltg

— The Associated Press (@AP) September 10, 2024

Compensation Concerns and Health Risks

While the plaintiffs’ lawyers express satisfaction with the community’s overall support for the settlement, some residents remain skeptical about its adequacy. A particularly contentious aspect of the agreement is the separate payment of up to $25,000 for personal injuries, which requires residents to waive their right to future lawsuits for serious ailments. Despite these concerns, 97% of residents have agreed to this condition.

“It is deeply satisfying that this community overwhelmingly supports this settlement,” the plaintiffs’ lawyers said in a statement. “This result would not have been possible without their resolve and determination to hold Norfolk Southern accountable.”

However, this optimistic view is not shared by all. Some residents express dissatisfaction with the settlement amount, particularly those at the outer edge of the affected area who may receive only a few hundred dollars. Additionally, there is frustration that previous aid payments will be deducted from the settlement, potentially reducing the final compensation for some households.

Environmental and Health Concerns Persist

The derailment, which the National Transportation Safety Board (NTSB) attributed to an overheated wheel bearing, resulted in the release and burning of hazardous chemicals. This has left residents with ongoing concerns about the extent of contamination and potential long-term health effects. The community’s request for the release of all tests conducted by the plaintiffs’ expert was denied, with lawyers citing violation of settlement terms.

“Very few people who live near the East Palestine, Ohio, train derailment opted out of a $600 million class action settlement despite residents’ reservations about whether the deal offers enough, so lawyers argue the agreement should be approved later this month.”

A separate federal settlement mandates Norfolk Southern to fund ongoing cleanup efforts, long-term medical monitoring, and groundwater testing. These measures aim to address the community’s concerns about future health and environmental impacts. The NTSB’s investigation also revealed that officials may not have needed to blow open and burn five tank cars containing vinyl chloride, a decision that has been a point of contention among residents.

As the September 25 final hearing approaches, where a federal judge will consider approving the settlement, the community of East Palestine remains divided. While the majority have accepted the terms, the voices of those who reject the settlement underscore the complex challenges of achieving fair compensation and accountability in the wake of such a significant environmental disaster.