Norfolk Southern is seeking financial help from two companies to cover part of a $600 million settlement related to a train derailment in East Palestine, Ohio. This incident, which occurred on February 3, 2023, released toxic chemicals into the environment and led to a significant evacuation of the area.
The railroad company has filed a motion to hold GATX, the railcar owner, and OxyVinyls, the chemical manufacturer, accountable for their roles in the derailment. Norfolk Southern argues that both companies share some responsibility for the disaster. The trial is set to start on Monday and will determine how much, if any, of the settlement costs GATX and OxyVinyls will need to cover.
This legal action will not change the amount of money residents will receive from the settlement, which has already been agreed upon. Instead, it will decide which companies will ultimately bear the financial burden of the settlement payments.
Residents of East Palestine are still waiting for most of the settlement funds due to ongoing appeals, although some payments have begun to be disbursed. Many locals remain concerned about potential health issues stemming from the chemicals released during the derailment.
The derailment is considered one of the worst rail disasters since a tragic incident in Canada in 2013, which resulted in the deaths of 47 people. This has prompted renewed attention on rail safety and potential reforms, although legislative efforts have stalled in Congress.
Norfolk Southern claims it has already incurred over $1 billion in cleanup costs related to the derailment. The company believes that GATX is partly to blame because the railcar involved had an overheating bearing that failed, causing the derailment. Norfolk Southern also asserts that OxyVinyls provided misleading information about the vinyl chloride, a chemical involved in the incident, which influenced the decision to burn off the chemical to prevent an explosion.
In response, both GATX and OxyVinyls have denied responsibility. GATX insists that Norfolk Southern was in charge of operating and inspecting the train and should have detected any issues with the railcar. They argue that even if the railcar had previous damage, it was Norfolk Southern’s duty to identify and repair it.
The National Transportation Safety Board confirmed that the crash was caused by the failure of the overheating bearing on the GATX railcar. Although Norfolk Southern’s sensors detected the heating, they did not trigger an alarm until just before the derailment, leaving the crew little time to react.
The trial is expected to last two to three weeks, as Norfolk Southern continues to seek accountability from GATX and OxyVinyls for the fallout from the derailment.