A crucial trial is about to commence, aiming to determine the financial responsibilities surrounding the $600 million settlement linked to the catastrophic Norfolk Southern train derailment near the Ohio-Pennsylvania border. The incident, which occurred on February 3, 2023, resulted in a significant release and burning of toxic chemicals, raising serious health and environmental concerns in the local community.

Norfolk Southern is seeking the court's intervention to compel railcar owner GATX and chemical manufacturer OxyVinyls to contribute to the settlement costs. Norfolk Southern contends that the two companies share a portion of the blame for the derailment and its aftermath, which saw a release of hazardous substances, including vinyl chloride. This trial, commencing Monday, focuses not on changing the compensation amounts due to affected residents—those figures are pre-established—but rather on who will ultimately fund the settlement.

Despite some initial payments, residents are still awaiting substantial settlement funds, largely stalled due to ongoing appeals in the case. This uncertainty continues to fuel anxiety amongst residents regarding potential long-term health impacts from the toxic exposure they experienced.

The fallout from this derailment marks the worst rail disaster in the United States since the 2013 Lac-Megantic tragedy in Canada, which took the lives of 47 people. In the wake of this disaster, rail safety has become a hot topic, with proposed reforms surfacing in Congress, although progress has since stagnated.

Norfolk Southern Points Fingers: Who’s Really Responsible?

This is not Norfolk Southern's first attempt to hold GATX and OxyVinyls accountable. Last year, they lost a case aimed at making these companies contribute to the environmental cleanup, which has cost the railroad over $1 billion. They are once again asserting that the incident’s fallout should not solely burden them. “Norfolk Southern alone has paid the costs relating to the derailment despite ample evidence that other parties share in the responsibility,” stated the railroad’s spokesperson.

It is important to note that Norfolk Southern does not own the majority of the railcars it operates, and the company argues that all entities involved in transporting hazardous materials have a collective duty to ensure safety. Specifically, they claim that GATX is liable because the railcar filled with plastic pellets experienced an overheated bearing that caused the derailment.

Meanwhile, OxyVinyls is under scrutiny for providing potentially misleading information regarding the vinyl chloride. Norfolk Southern maintains that this misinformation significantly influenced the decision to conduct a controlled burn of the chemicals—an action that resulted in a substantial and troubling plume of smoke that shrouded East Palestine.

Defensive Stance from GATX and OxyVinyls

In response, both GATX and OxyVinyls have denied any wrongdoing. GATX has labeled Norfolk Southern's claims as “baseless,” emphasizing that they adhered to relevant regulations. They argue that any issues with the railcar should have been identified and rectified by Norfolk Southern. OxyVinyls also clearly stated that it played no role in causing the derailment or the subsequent decision-making that led to the venting and burning of the vinyl chloride tanks.

The National Transportation Safety Board (NTSB) has attributed the derailment to the failure of an overheated bearing on the GATX railcar, noting that Norfolk Southern's sensors detected the problem, but they failed to respond adequately in time to prevent the disaster.

As the trial unfolds, it is expected to last between two to three weeks, during which the court will examine the evidence presented by all parties. The outcome could significantly impact not only the involved companies but also the ongoing recovery efforts and the residents still grappling with the disastrous consequences of that fateful day in East Palestine.

Stay tuned as this landmark case progresses—will Norfolk Southern succeed in sharing the financial burden, or will the other companies walk away scot-free?