An April settlement awarding millions to affected residents of the East Palestine train derailment has been updated. Now, victims have one month to make an important decision.
East Palestine Derailment
On Feb 3, 2023, a Norfolk Southern freight train passing through East Palestine, Ohio, was derailed. The ensuing accident released toxic chemicals into the atmosphere and into the surrounding lands and waterways.
Releasing Toxic Chemicals
In the days following the train derailment, freight giant Norfolk Southern torched connected tanker cars full of cancer-causing vinyl chloride, which released even more toxic materials into the air.
Health Issues Arise
Within the first week or two residents of East Palestine began reporting unexplained health issues and sickness, including rashes, breathing problems, and intense nausea.
$25,000 Per Person
Now, people who incurred injury and sickness from the toxic derailment could receive $25,000 in damages, as part of a $600 million class-action settlement established earlier this year.
Increase from Estimate
Initially, the injury payment per person was estimated at just $10,000, but this was increased to $25,000 this week after a full overview of the derailment’s impact on physical health.
More Information Collected
Adam Gomez, an attorney representing plaintiffs in the case, confirmed that the courts now have sufficient information about the number and size of injury claims in the case to give a more accurate figure.
“Not Looking to Overpromise”
“We are not looking to over promise and under deliver in any way shape or form to the class,” Gomez told the Associated Press following the announcement.
Property and Injury Compensation
The $600 million settlement money will go toward compensating residents and businesses established within 20 miles of the derailment site. The $25,000 injury payment will only apply to residents who live within 10 miles of the derailment site, while the rest will compensate for property damage.
The Catch
However, there is a catch. Any residents who live within that 10-mile radius and are eligible for the payment will have to legally rescind their right to file suit against the company in the future.
No Further Lawsuits
This means that if health conditions become more serious in the future – ie, developing into cancer or any other severe or even terminal condition – they will not be able to sue Norfolk Southern for further damages.
August Deadline
Those who agree to the settlement terms have until August 22 to make a decision.
How Will It Be Received?
It’s still unclear whether the new settlement announcement will be well-received by East Palestine community members, many of whom spoke out against the initial settlement figure with Norfolk Southern.
“Outstanding” or Inadequate?
Norfolk Southern agreed to the $600 million settlement back in April. While attorneys for the plaintiffs described it as an “outstanding result,” many East Palestine residents reportedly felt that it would not be enough to make up for potential long-term health effects and environmental damage.
“What Does It Do for People?”
“What does it do for the people that are still being exposed and that are sick? What does it do for our contaminated creeks?” Jami Wallace, president of the Unity Council for the East Palestine Train Derailment, asked The Huffington Post at the time.
Attorneys Are Satisfied
Following this recent announcement, plaintiffs attorneys, including Gomez, have encouraged residents to accept the injury payments.
Evidence from Toxicologists
Based on evidence gathered by toxicologists that the lawyers hired, which focused on the toxic chemicals and the window of exposure in East Palestine, they believe it is unlikely that severe illnesses will affect residents in the future.
Not Enough Data
“In fact, we do not think that there is support in that data for any significant increase in the number of additional cancers or other illnesses in East Palestine or the surrounding communities,” Gomez told the AP.
A Difficult Road Ahead
Gomez has also asked affected residents to consider the lengthy and difficult process of pursuing an individual class-action lawsuit in the future. This would include the difficulty of proving that an illness like cancer was caused by the derailment.
Not to Be Forgotten
Regardless of how many residents accept the injury and property damage payments, the event and its settlement will remain brandished in the memory of East Palestine residents, and the entire nation, for years to come.
Worst in a Decade
The toxic train derailment was the worst train derailment in more than a decade, according to the National Transportation Safety Board. Last year, NPR reported the $600 million settlement as the country’s largest-ever train derailment settlement to date.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
