Wednesday hearing to weigh final approval of $600M East Palestine derailment settlement

Judge Benita Pearson

A federal judge will preside over a court hearing Wednesday in Youngstown to determine if she will approve a $600 million class-action settlement for those impacted by Norfolk Southern Railroad’s fiery derailment and chemical spill in East Palestine in February 2023.

U.S. District Judge Benita Pearson will hear from attorneys who negotiated the settlement offered to residents and businesses within 20 miles of the spill and the subsequent decision to burn off remaining chemicals in tank cars. Nearly 55,000 claims have been filed.

According to a court document filed Tuesday, 362 households and 56 businesses, schools, and other entities have asked to opt out of the property damage settlement. Those excluded from the settlement would be able to pursue legal action independently.

Some businesses on the exclusion list include Ceramfab, Birdfish Brewing, Millers Furniture of Mercer County, and the Birddog Dog Kennel. Several farms and school districts in Western Pennsylvania are also excluded, as well as government entities like Little Beaver Township and the Highlandtown Volunteer Fire Department.

Some have objected to the settlement, claiming that the money is insufficient to compensate them for their losses. Concerns also persist about the potential for long-term contamination from the derailment.

People living within two miles of the derailment site on East Taggart Street could receive $70,000 for property damage if Judge Pearson approves the settlement. Those between 2 miles and 20 miles will receive substantially less.

21 News received an email announcing plans to stage a protest before Wednesday's hearing outside the courthouse.  Mike Stout and Ashley McCullom call the settlement "a mere pittance for what these victims need for their healthcare and evacuation to safer locations."

RELATED COVERAGE: EPA data make it hard to know the extent of the contamination from East Palestine derailment

Judge Pearson has filed an order reminding those attending Wednesday's 10 a.m. hearing that no one is permitted to bring cell phones or other recording devices into the courtroom and that anyone violating the rule could be held in contempt.

The settlement is separate from Norfolk Southern’s promise to pay the government for the cost of the ongoing cleanup, continued water tests, and long-term medical monitoring.

Government investigators have concluded that the derailment was caused by an overheated bearing in one of the tank car’s wheels.