Residents living near the East Palestine derailment from last year will still have access to personal injury payments, despite the ongoing hold on the overall $600 million class action settlement with Norfolk Southern railroad due to an appeal.
According to a representative from the legal team that advocated for the residents, the settlement includes provisions permitting personal injury payments to be processed while the appeal concerning the fairness and adequacy of the deal continues. Details on how much of the settlement fund will be allocated for these payments remain unclear as the attorneys have not disclosed that information. Recently, a federal judge gave the green light to the settlement.
The legal representatives have not shared statistics on the breakdown of the approximately 55,000 claims submitted, distinguishing between those related to injuries and those concerning property damage. Additionally, they have not specified how much individual claimants will receive. Out of the thousands of claims, only 370 households and 47 businesses chose to opt out of the settlement.
For residents living within a 10-mile radius of the derailment, which occurred near the Ohio-Pennsylvania boundary in February 2023, there is potential for them to receive up to $25,000, contingent on their agreement to waive future legal action regarding serious health issues such as cancer.
In contrast, residents who experienced property damage could receive more significant payments—up to $70,000 per household if they lived within two miles of the accident scene, with the amount decreasing for those situated further away, up to a radius of 20 miles.
A more certain aspect of the settlement is the approval of $162 million in legal fees that the judge has sanctioned, which stands to be unaffected unless the settlement is overturned upon appeal.
Uncertainty looms over the exact amount residents will ultimately receive since their claims are still under review. Moreover, any settlement amounts will be reduced based on prior assistance they received post-derailment, such as relocation aid and compensation for lost wages and property damage, given by Norfolk Southern. Additionally, some lawyers who are not part of the main claim may seek to collect a share of any settlements awarded to residents.
Administrative expenses have claimed at least $18 million of the funds, and the class action attorneys now predict that this figure could increase by approximately $825,000 due to the necessity of handling personal injury payments separately from property-related ones.
The initial appeal initiated by Rev. Joseph Sheely sparked division within East Palestine, as some residents expressed their frustration over delays in settlement checks and even issued threats. However, Sheely later clarified that he no longer wished to pursue the appeal, despite earlier skepticism regarding the settlement’s fairness.
Recently, four additional residents declared their intention to appeal. They may face criticism over perceived greed; however, their attorney, David Graham, contends they are willing to endure backlash in their quest for a fair settlement that meets the community’s needs. Graham emphasized the courage of those stepping forward amidst the adversities they know they may face.
In a motion filed on Monday, the plaintiffs’ lawyers requested the judge to compel Sheely to post an $850,000 bond before his appeal could proceed. Following the filing of additional appeals, the necessity for such a bond may no longer be applicable, leaving uncertainty regarding any further bond requirements for those appealing.
Detractors of the settlement assert that they were pressured into accepting it without being fully informed about the extent of the contamination caused by the hazardous chemical spill and the subsequent decision to intentionally release vinyl chloride from tanks and ignite it. Their skepticism extends to the Environmental Protection Agency’s (EPA) assurances about safety, compounded by the plaintiffs’ attorneys not disclosing findings from their experts regarding dangerous chemicals in the area.
The lawyers defended their stance, reiterating in Monday’s motion that even if residents feel inadequately informed about the potential dangers, they should still place their trust in the legal team due to the thorough research and expert consultation they undertook.
Graham raised concerns about the inadequacy of the proposed personal injury payments, indicating that medical expenses could quickly surpass the allocated funds if claimants experience significant health issues.
Furthermore, Norfolk Southern has reached a separate agreement with the government to fund $25 million for two decades of medical examinations for community members. However, this agreement does not cover treatment for any illnesses that may arise as a result. This deal is still awaiting final approval.
