The company behind the railcar involved in the East Palestine train derailment will not be responsible for contributing to the $600 million settlement that Norfolk Southern reached with residents affected by the incident. An Ohio jury ruled that GATX, the railcar’s owner, is not liable for the damages, despite the fact that a bearing failure on its railcar, which was transporting plastic pellets, triggered the crash on February 3, 2023.
GATX argued that Norfolk Southern was in charge of operating and inspecting the train and was ultimately responsible for ensuring the safe delivery of the cargo. Following the jury’s decision, GATX expressed satisfaction, stating that the outcome confirmed their belief that Norfolk Southern alone should bear the blame for the derailment and its aftermath.
Norfolk Southern, on the other hand, expressed disappointment with the verdict but assured that it would continue to fulfill its commitments to those impacted by the derailment. The railroad has been covering costs related to the incident for over two years and has always maintained that GATX shares some responsibility.
The derailment led to a significant chemical spill and a fire, prompting officials to conduct a vent-and-burn operation on five tank cars filled with vinyl chloride. This operation, which occurred three days after the derailment, was intended to prevent explosions but resulted in a large plume of smoke and evacuations in the surrounding area. An investigation by the National Transportation Safety Board later indicated that the vent-and-burn was unnecessary and criticized Norfolk Southern for not heeding expert advice.
Norfolk Southern had previously lost a lawsuit attempting to hold GATX and OxyVinyls, the manufacturer of the vinyl chloride, accountable for cleanup costs, which have exceeded $1 billion. These legal battles have no bearing on the financial settlements for residents of East Palestine; they simply determine which company will be responsible for paying.
Recently, OxyVinyls reached a settlement with Norfolk Southern related to the class-action lawsuit, although details of that agreement remain undisclosed. The National Transportation Safety Board confirmed that the crash was caused by an overheating bearing on the GATX railcar. Though the railroad’s sensors detected the rising temperature before the derailment, they did not trigger an alarm in time for the crew to stop the train.
In summary, the jury’s decision clears GATX of financial responsibility for the settlement, placing the onus squarely on Norfolk Southern as they continue to address the fallout from this significant incident.