In Re: East Palestine Train Derailment

Case Background

On February 7, 2023, Plaintiff Harold R. Feezle, on behalf of themselves and all others similarly situated, filed a class-action lawsuit in the United States District Court, Ohio Northern (Case number: 4:23cv242). The lawsuit stemmed from the train derailment that occurred near East Palestine, Ohio. Judge Benita Y. Pearson presided over this case.

Cause

On February 3, 2023, a train operated by Norfolk Southern Railway Company derailed near East Palestine, Ohio, while traveling from Illinois to Pennsylvania. Approximately 100 railcars derailed, including 10 to 20 that carried hazardous materials like vinyl chloride. The derailment caused these chemicals to ignite, creating a fire that released toxic fumes and carcinogens into the air.

This disaster forced the immediate evacuation of all residents and businesses within a one- to two-mile radius. Plaintiffs, including Harold R. Feezle, Susan E. Scheufele, and David J. Scheufele, filed a class-action lawsuit against Norfolk Southern Railway Company and Norfolk Southern Corporation. They claimed that the Defendants’ negligence caused the derailment, the release of dangerous chemicals, and the subsequent harm.

Injuries

The Plaintiffs and other residents in the affected area suffered significant injuries and damages. Exposure to vinyl chloride, a highly toxic chemical, posed both immediate and long-term health risks. Vinyl chloride has been linked to severe health conditions like liver cancer, brain cancer, and respiratory depression. David J. Scheufele sustained injuries from exposure to the toxic fumes and carcinogens. Many residents experienced physical symptoms such as dizziness, headaches, and nausea from the harmful substances released into the air.

In addition to health concerns, the Plaintiffs faced substantial financial losses and emotional distress. Harold R. Feezle, a business owner, had to close his business during the evacuation. This decision resulted in significant economic harm. Property owners reported a decrease in property values and ongoing fears about environmental contamination. Families were displaced for extended periods, disrupting their daily lives. Emotional distress added to these challenges, as residents worried about the safety of their homes, the lasting environmental impact, and the health consequences of toxic chemical exposure.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s):Harold R. Feezle | Susan E. Scheufele | David J. Scheufele, on behalf of themselves and all others similarly situated | Erie Insurance Company | Erie Insurance Exchange | Homesite Insurance Company of the Midwest | American Family Insurance | Ceramfab, Inc. | Yonggong, LLC | WYG Refractories, LLC
    • Counsel for Plaintiff:Alycia N. Broz | Claire Halffield | Emily Taft | Gary J. Saalman | Grant W. MacKay | Jacob D. Mahle | James B. Lind | James A. Wilson, Jr. | John M. Kuhl | Karey E. Werner | Kimberly Weber Herlihy | Martha Brewer Motley | Michael P. Oliverio | Mitchell A. Tobias | Sara A. Ingram | Timothy B. McGranor | Aaron M. Stevenson | Abigail Ulcej | Alanna Carden | Ben A. Barnes | Cade C. Boland | Carlos Estrada | Hariklia Karis | Jonathan Emmanuel | Joseph A. Castrodale
    • | Meggan A. Louden | Robert B. Ellis | Samuel C. Cowan | Steven J. Lindsay | Sydne K. Collier | Bradley W. Foster | Brian C. Swanson | David M. Matejczyk | Dustin N. Smith | Grant W. MacKay | Michelle L. Kranz | Sindhu S. Daniel | Vincent L. Greene, IV | Jon C. Conlin
  • Defendant(s):Norfolk Southern Railway Co. | Norfolk Southern Corp.| OXY Vinyls LP | Gatx Corporation | General American Marks Company | Trinity Industries Leasing Company
    • Counsel for Defendants:Aaron M. Ponzo | Alan E. Schoenfeld | Albinas Prizgintas | Alexandra Tucker Stewart | Allyson Slater | Andrew Rhys Davies | Benjamin Neaderland | Brian J. Lambson | Brittany Amadi | Christopher A. Rheinheimer | David C. Marcus | Davina Pujari | Denis Hurley | Forrest A. Norman III | Grant W. MacKay | Howard M. Shapiro | J. Lawson Johnston | Jocelyn Keider | John V. Hobgood | Jonathan Knight | Jonathan E. Paikin | Jonathan M. Redgrave | Katherine V. Mackey |
    • Koji F. Fukumura | Laura M. Elliott | Maria V. Hanley | Martha E. Ferson | Martin T. Tully | Mazda K. Antia | Micah C. Fielden | Michael Romeo | Michaela P. Sewall | Michelle Liszt Sandals | Molly Jennings | Monica McCarroll | Noah Levine | Paul A. Roman Jr. | Peter Neiman | Philip E. Beshara | Robert L. Boone | Sarah B. Petty | Scott D. Clements | Simon B. Kress | Tasha J. Bahal | William V. O’Connor

Claims

The Plaintiffs brought multiple legal claims against Norfolk Southern Railway Company and Norfolk Southern Corporation. First, they alleged negligence. They argued that the Defendants failed to properly maintain and inspect their rail tracks, cars, and equipment. They also claimed the Defendants did not provide adequate training to their employees. The Plaintiffs argued that these failures directly caused the derailment and the subsequent damages.

Second, the Plaintiffs argued that the Defendants’ actions constituted a nuisance. The release of hazardous chemicals like vinyl chloride significantly interfered with the Plaintiffs’ ability to use and enjoy their homes, properties, and businesses. The Plaintiffs contended that this interference was both substantial and unreasonable, leading to physical harm and emotional distress.

Third, the Plaintiffs pursued a claim of strict liability. They argued that transporting hazardous materials like vinyl chloride was inherently dangerous. By engaging in this activity, the Defendants assumed strict liability for the harm caused by the chemical spill.

Finally, the Plaintiffs alleged trespass. They claimed that the Defendants allowed toxic fumes, chemicals, and hazardous substances to invade their properties without consent. The Plaintiffs maintained that this unauthorized intrusion caused direct harm to their homes and businesses.

Defense

In response, Norfolk Southern Railway Company and Norfolk Southern Corporation denied the allegations of negligence. They argued that their actions complied with all applicable laws and regulations. The Defendants contended that factors beyond their control, including potential intervening or superseding events, caused the train derailment and the chemical spill.

The Defendants claimed that they operated under federal regulatory standards and adhered to industry safety protocols. These included railcar maintenance and chemical transportation guidelines. Norfolk Southern also argued that third-party entities, like OxyVinyls LP, shared responsibility for the damages. The Defendants asserted that some Plaintiffs failed to mitigate their damages and claimed that certain legal doctrines, such as assumption of risk and estoppel, barred some claims.

The Defendants also highlighted alleged spoliation of evidence by other parties. They invoked federal preemption laws, arguing that state-based claims conflicted with federal regulations governing railroad operations. Ultimately, the Defendants sought to have the claims dismissed, asserting that they had acted reasonably and did not engage in conduct that warranted liability for the train derailment or the vinyl chloride chemical spill.

Settlement

On September 25, 2024, Federal Judge Benita Pearson granted final approval for a $600 million settlement offered by Norfolk Southern. This settlement resolved the class-action lawsuit resulting from the train derailment in East Palestine, Ohio. The settlement addressed the claims of approximately 55,000 individuals. Under the agreement, individuals living within a two-mile radius of the derailment site became eligible for payments of up to $70,000 per household. They could also receive $25,000 per person for health-related issues.

The settlement had an inverse payment structure. Compensation decreased the farther individuals lived from the derailment site. This resolution aimed to fairly compensate residents for property damages, health impacts, and other losses caused by the train derailment and vinyl chloride chemical spill.

Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com