Residents affected by the East Palestine train derailment last year may still receive personal injury payments even as the $600 million class action settlement with Norfolk Southern railroad remains under appeal. According to attorneys representing residents, provisions in the deal allow for personal injury payments to go ahead while the appeal process is ongoing to determine the adequacy and fairness of the settlement. The exact amount of the settlement fund that will be used for these payments has not been disclosed.
A federal judge approved the settlement last month, but details on the breakdown of the roughly 55,000 claims received, including injuries and property damage, remain unspecified. Only a small number of households and businesses chose to opt out of the settlement, indicating broad acceptance within the community.
Residents within a 10-mile radius of the derailment site were eligible to receive up to $25,000 each, provided they waived the right to sue in the future for health-related issues. Those living closer to the crash site could potentially receive larger payments, up to $70,000 per household, with amounts decreasing based on distance from the incident.
Legal fees of $162 million were approved as part of the settlement, and these fees are unlikely to change unless the deal is overturned on appeal. However, the final settlement amounts for residents remain uncertain as claims are still under review and will be adjusted based on prior aid received from Norfolk Southern.
Several residents have expressed concerns about the settlement and have initiated an appeal, citing inadequate information on the health risks posed by the incident and questioning the transparency of the process. Some residents feel that the personal injury payments are insufficient, given the potential long-term health effects they may face.
Despite the ongoing legal proceedings, a separate agreement between the railroad and the government for medical exams for residents does not include provisions for treatment of illnesses that may develop as a result of the derailment. The appeal process and residents’ concerns regarding the settlement continue to unfold as the community seeks resolution and fair compensation for the damages incurred.