EAST PALESTINE, Ohio — Being part of the largest settlement ever as a result of a railroad disaster should feel like a win. But for some, it feels like just that – settling.
“I think a lot of people just want the money and to be done with it,” said East Palestine resident Jackie Johnson.
Last week, a federal judge in Ohio granted final approval to a $600 million settlement in a class action lawsuit filed against Norfolk Southern for the fiery train derailment on Feb. 3, 2023.
The railroad operator, which did not have to admit to any wrongdoing or liability for the accident, agreed to settle with residents and businesses within a 20-mile radius of the derailment site. Those who qualified faced the difficult choice of whether to reserve some of their legal rights to sue later, including for health problems that may arise, or take the money available now.
In the end, the vast majority chose the latter. The claim rate in the village is at 92%, according to attorneys representing residents.
On Saturday, George R. Thompson, an independent chemical expert with 55 years of experience, spoke to about two dozen residents at an East Palestine church about health concerns he has for the community.
Through his own analysis of the train's contents, he said he found that at least 120 chemicals known to cause cancer in over 20 organ systems were emitted during the vent and burn of five railcars holding hazardous chemicals in the days after the derailment. But he said the true impact remained unknown because the chemical stew could have created hundreds of additional compounds when burned.
With these results in mind, he said the settlement doesn’t go far enough. He said it should have required an independent expert to reassess air, water and soil test results from Norfolk Southern and the EPA. He said he wanted to see the railroad create a trust fund to compensate people for the fair market value of their home or business so they could leave the community if they want.
“There's just games that have been played with this,” he said. “The reality is that they're playing with your lives, and I would hope that you can develop a mindset after today that says I'm not going to sit still for this.”
Ms. Johnson lives less than a mile away from the tracks where more than 50 cars derailed and caught fire. When it comes to the lawsuit, Ms. Johnson only wants enough money to make up for the property value loss she’s suffered.
She and her husband had planned to move closer to their grandson in Columbiana, Ohio, but their plans were dashed by the derailment. Now, she doesn’t know whether anyone will ever want to buy her home.
(Benjamin B. Braun/Post-Gazette)
The amount households will receive depends on numerous factors, including the number of people in the household, the age of the residents, the size of the property and how long residents were displaced. Households up to two miles from the derailment site can expect about $70,000. Those who live as far as 15 to 20 miles can expect about $250 from the settlement.
Attorneys will take 27% of the settlement fund, or about $162 million, and another 3%, about $18 million, will go toward costs and expenses of the case. And $15,000 awards will go to certain class representatives who closely worked with attorneys in the litigation process.
Based on the estimates, Ms. Johnson’s household will receive about $130,000 total, between the direct payment, which covers property damage, and the separate personal injury payment, reserved for individuals within a 10-mile radius.
“I'm concerned about making money on my house to get out of here,” she said.
East Palestine mom Zsuzsa Gyenes said she only opted into the suit because she felt like she had no other option. The derailment forced her and her young son out of their home and into hotels for 17 months.
She says she has no idea what she’ll end up getting, because the reimbursement money she had already received from Norfolk Southern will be deducted from the final payment.
Ms. Gyenes said she feels the settlement now is punishing her for making a decision to keep her family safe.
“That money is being taken away as if we were being paid twice, but that was definitely not the case,” she said.
Navigating the complex legal process, Darlington, Pa., resident Carly Tunno said she didn’t feel she had anyone to turn to, as she hadn’t retained an attorney herself. When she went to the settlement claims center set up in East Palestine, she said staffers there were unable to answer her questions and referred her to court documents.
She said at one point, she and her husband had different ideas about whether to take the money. Eventually, they decided to submit a claim, as they had already missed the opt-out deadline and not filing a claim meant they would get nothing. She said she would have liked to see the hearing postponed until the public, or at least class members in the lawsuit, had a chance to review what attorneys found from independent experts and testing.
“These are attorneys that were supposed to operate in our best interest,” Ms. Tunno said. “They did not do that.”
She said she also was frustrated by the lack of medical monitoring provisions. The court overseeing the litigation determined a medical monitoring program was not available under Ohio law, though residents can use the personal injury payments to cover long-term health expenses.
During last week’s court proceedings, Judge Benita Pearson also argued that medical monitoring was already part of a separate, pending $310 million federal agreement through the Justice Department and the Environmental Protection Agency. If approved, the railroad would be required to pay $25 million into medical monitoring and mental health services for residents for up to 20 years.
But Ms. Tunno said she feels uncomfortable with the testing being led by the government or its contractors, saying those two entities already had misled the community on the dangers of the derailment.
“They're still not giving us answers,” she said. ‘They're still not admitting to the extent of the contamination. We still don't have anywhere to go. We don't have the experts to go to. We don't have the doctor's offices that are equipped.”
First Published: September 28, 2024, 3:33 p.m. Updated: September 30, 2024, 8:07 a.m.