East Palestine residents seek more time and transparency before deciding on $600 million settlement with Norfolk Southern.
At a Glance
- Residents within 10 miles of the derailment must decide on accepting up to $25,000 for personal injuries, waiving future lawsuit rights.
- Compensation varies by proximity, with those within 2 miles receiving $70,000 for property damage.
- Attorneys could receive up to $162 million in legal fees from the settlement.
- The National Transportation Safety Board indicated the crash was likely caused by an overheating bearing on a train car.
Residents Seek More Time and Information
East Palestine residents are requesting additional time and information before deciding whether to accept their share of a $600 million class-action settlement with Norfolk Southern. The settlement, which covers everyone within 20 miles of East Palestine, stems from last year’s disastrous train derailment. Residents have expressed concerns about the lack of disclosed testing results and the potential long-term health effects of the incident.
Attorney David Graham filed a motion criticizing the lack of disclosed testing results from expert Stephen Petty. Graham wrote, “Fast forward to their present, post-settlement posture, and class counsel and their PR machine have now forgotten all about their star testing expert, Petty.” This lack of transparency has left many residents feeling uncertain about the adequacy of the settlement.
BREAKING: East Palestine Ohio residents file motion to reevaluate $600 million settlement, accuse lawyers of collusion with Norfolk Southern https://t.co/weKaAol2Qp
— Jordan (@JordanChariton) August 19, 2024
Compensation Structure and Concerns
The settlement offers varying levels of compensation based on proximity to the derailment site. Residents within 10 miles must decide on accepting up to $25,000 for personal injuries, which waives their right to sue later for serious illnesses. Those within 2 miles could receive $70,000 for property damage. However, some residents worry that this may not be sufficient given the potential long-term health risks.
The settlement’s formula for compensation is still being developed and requires federal judge approval. Jayne Conroy, one of the lead attorneys, emphasized the individualized nature of the compensation, stating, “This is not like your AT&T settlement where everybody gets two bucks. No, this is very individualized with respect to how close people were to the impact area, what their current situation is, whether they own, whether they rent — all sorts of criteria.”
Conflicting Expert Opinions
Adding to the residents’ concerns are conflicting expert opinions on the potential health risks. Dr. Arch Carson stated at an online town hall that cancer development is unlikely, based on unspecified data. However, Dr. Erin Haynes, who is leading one of the main studies in town, strongly disagrees with this assessment.
“I completely disagree with Dr. Arch Carson – there is no research data that suggest that his statement is correct,” said Dr. Erin Haynes, who is chair of the Department of Epidemiology and Environmental Health at the University of Kentucky College of Public Health.
The discrepancy between expert opinions has left many residents feeling uncertain about the long-term health implications of the derailment. This uncertainty is a key factor in their desire for more time and information before making a decision on the settlement.
Looking Ahead
As the deadline for claims approaches, it remains unclear whether the judge will rule on the motion for more time. The settlement, while significant, does not affect pending lawsuits by the EPA and Ohio against Norfolk Southern. Transportation Secretary Pete Buttigieg has emphasized the need for railroad safety reforms and urged Congress to pass proposed legislation.
Norfolk Southern CEO Alan Shaw stated, “This gives monetary relief to individuals and qualifying businesses that they can apply in a manner to which they choose. What it really does is it addresses a lot of the financial exposure that was out there for Norfolk Southern and our shareholders, and takes that tail risk out of it.”
As East Palestine residents grapple with this decision, the community’s future hangs in the balance. The settlement may provide immediate financial relief, but questions about long-term health impacts and environmental consequences remain unanswered, leaving many to wonder if the proposed compensation truly addresses the full scope of the derailment’s impact on their lives and community.
