Norfolk Southern is seeking financial contributions from two other companies to help cover a $600 million class-action settlement related to a catastrophic train derailment in 2023 near the Ohio-Pennsylvania border. The derailment resulted in the release and combustion of hazardous chemicals. Norfolk Southern filed a motion seeking compensation from the railcar owner GATX and the chemical manufacturer OxyVinyls, arguing that these companies share responsibility for the incident on February 3, 2023, in East Palestine, Ohio. This lawsuit, set to begin trial on Monday, will not impact the amount of money residents will receive but will determine which companies are liable for covering the settlement costs.
Despite some payouts, many residents have yet to receive the bulk of the funds due to ongoing appeals. The derailment released a variety of chemicals that caught fire, and three days post-incident, officials intentionally breached five tank cars containing vinyl chloride due to fears of explosion, resulting in a large smoke plume that necessitated town evacuations. The incident, which drew comparisons to the tragic 2013 Lac-Megantic rail disaster in Canada, has left residents concerned about long-term health impacts and has urged renewed focus on rail safety in the U.S. Congress, although reforms have stalled.
Norfolk Southern contends that it should not shoulder the financial burden alone when other parties contributed to the risk. The railroad’s previous attempt to involve GATX and OxyVinyls in covering environmental cleanup costs, which have exceeded $1 billion, was unsuccessful. However, Norfolk Southern is again asserting that all parties involved in the transportation of hazardous materials must assume their appropriate responsibilities under federal regulations.
The company argues that GATX is partly at fault for the derailment because the railcar’s overheated and failed bearing caused the accident. This failure led to 38 cars derailing. Additionally, Norfolk Southern claims that OxyVinyls must share liability due to allegedly providing conflicting and inaccurate details about its vinyl chloride, which influenced the decision to discharge and ignite the chemical.
Both GATX and OxyVinyls reject these allegations, asserting that Norfolk Southern was responsible for the train’s operation and inspections, thus bearing the responsibility for the safe delivery of cargo. GATX states that they adhered to regulations and even suggests that any prior damage from Hurricane Harvey should have been detected and rectified by Norfolk Southern. According to the National Transportation Safety Board, the cause of the crash was linked to GATX’s overheated bearing. Although the railroad’s sensors detected the bearing heating up in the hours before the accident, a critical alarm was only triggered moments before the derailment, affording inadequate time for the crew to react.
The decision to vent and burn the vinyl chloride was advised by Norfolk Southern, partly based on pre-release data from OxyVinyls warning about potential reactions and explosions. However, the NTSB’s investigation revealed these concerns were unfounded, noting that the tank cars had begun to cool and Norfolk Southern disregarded the input from OxyVinyls’ specialists during the emergency. OxyVinyls argues that the trial is an attempt by Norfolk Southern to deflect blame and avoid full financial responsibility for the derailment and subsequent actions. The trial is expected to span two to three weeks.