Norfolk Southern Corporation has successfully reached an agreement with OxyVinyls, one of the two companies involved in discussions over financial responsibility for a $600 million class-action settlement. This settlement comes in the aftermath of a catastrophic train derailment in 2023 in Ohio, which involved the release and subsequent burning of hazardous chemicals.
This legal arrangement does not alter the compensation amounts that the settlement beneficiaries will receive, nor does it affect payments made to the community of East Palestine or any other parties. The core issue tackled in this case pertains solely to which companies will financially contribute to the class-action settlement, separate from the extensive costs required for the environmental remediation.
Both Norfolk Southern and the chemical producer OxyVinyls, responsible for the vinyl chloride at the heart of the incident, disclosed their settlement on Thursday amid ongoing litigation concerning financial liability stemming from the derailment in East Palestine, Ohio. However, they stopped short of revealing detailed terms of the agreement.
The third party embroiled in the lawsuit, GATX, which owned the compromised railcar, chose to remain silent regarding the settlement details. Jury deliberations are anticipated next week as the trial, which initiated late last month, advances.
While some payments have already commenced, a significant portion of the settlement proceeds remains pending due to ongoing appeals. The derailment led to a spill and ignition of several chemicals, triggering an operational decision to breach five tankers carrying vinyl chloride amidst fears of an explosion, which resulted in a substantial black smoke cloud that prompted evacuations in the locality.
Health risks related to the incident are still a predominant concern among residents. Following an inquiry, the National Transportation Safety Board confirmed that the drastic vent-and-burn approach was unwarranted due to the cooling condition of the tank cars. Furthermore, the inquiry highlighted Norfolk Southern’s failure to heed expert advice from OxyVinyls and to communicate these insights to decision-makers.
Throughout the trial, Norfolk Southern shifted focus to inconsistencies in the information OxyVinyls provided both on-site and from their headquarters when discussions about releasing and burning vinyl chloride transpired. The railroad has maintained that OxyVinyls should contribute to the settlement funds, arguing that the chemical manufacturer furnished inaccurate data regarding the vinyl chloride, which influenced the decision to incinerate it.
In the previous year, Norfolk Southern faced a legal setback in a similar lawsuit, where their attempts to compel GATX and OxyVinyls to share costs for the environmental recovery post-derailment were unsuccessful, a venture that cost the company over $1 billion. They have revived comparable claims in this current trial, seeking assistance with the class-action settlement expenses.