The company that owned the railcar implicated in the catastrophic East Palestine train derailment in 2023 will not be contributing to the $600 million settlement that Norfolk Southern has agreed upon with the affected residents. On Wednesday, an Ohio jury ruled that GATX is not liable for the settlement, despite identifying a faulty bearing on its railcar transporting plastic pellets as the incident’s cause on February 3, 2023. GATX argued that Norfolk Southern was in charge of operating, inspecting the train, and ensuring the safety of the cargo delivery.
“GATX is pleased with the trial’s outcome, confirming what we have long believed: Norfolk Southern is solely accountable for the derailment and the resulting damages in East Palestine,” the company expressed in a statement.
Meanwhile, Norfolk Southern expressed disappointment over the verdict but assured that it would not influence their obligations to assist those impacted by the disaster. “For over two years, Norfolk Southern has shouldered expenses related to the derailment while acknowledging our role in the incident. We have consistently maintained that GATX shares that responsibility and should be held accountable,” Norfolk Southern stated.
Following the derailment in East Palestine, an assortment of chemicals spilled and ignited. Three days post-derailment, officials breached five tank cars filled with vinyl chloride over fears of a possible explosion, leading to a massive black smoke plume engulfing the area and compelling evacuations.
Last year, Norfolk Southern lost a lawsuit attempting to compel GATX and OxyVinyls, the vinyl chloride manufacturer, to contribute to the costly environmental cleanup, which has exceeded $1 billion for the Atlanta-based railroad. This trial employed similar arguments.
Although these legal battles do not influence the amount residents or the community of East Palestine will receive from the settlements, it does determine which company will provide the compensation.
In recent developments, OxyVinyls reached a settlement with Norfolk Southern regarding the class-action lawsuit after questions were raised about conflicting details provided by the chemical company on the necessity of the vent-and-burn procedure. Details of this settlement remain undisclosed.
The National Transportation Safety Board’s investigation confirmed the vent-and-burn operation was unnecessary, noting the tank cars were already cooling down and that Norfolk Southern ignored advice from OxyVinyls’ experts and failed to communicate their assessment to decision-makers.
Norfolk Southern criticized GATX for not better maintaining their railcar, particularly following its exposure to floodwaters, positing this might have compromised the bearings.
Conversely, GATX asserted compliance with all pertinent regulations regarding railcar upkeep. The company contested that even if the car had sustained damage from being parked amid Hurricane Harvey’s floodwaters six years prior, Norfolk Southern should have identified and rectified the issue, billing GATX for any incurred repairs.
The National Transportation Safety Board attributed the crash to the failure of an overheating bearing on GATX’s railcar. Although railroad sensors detected the bearing heating up moments before the derailment, it did not reach a critical temperature, triggering an alarm until just ahead of the crash, allowing inadequate time for the train crew to intervene.