Jury Rules Norfolk Southern Must Pay $600M Settlement

Jury Rules Norfolk Southern Must Pay $600M Settlement

Introduction

The company that owned the railcar involved in the 2023 East Palestine, Ohio train derailment will not be held financially responsible for the $600 million class-action settlement Norfolk Southern agreed to pay residents.

An Ohio jury ruled that GATX Corporation, the owner of the railcar whose bearing failed and led to the derailment, is not liable for the damages.

Jury Sides with GATX

Despite the fact that a failed bearing on a GATX-owned railcar carrying plastic pellets triggered the February 3, 2023, derailment, the jury determined that GATX is not accountable for the resulting settlement. GATX has consistently argued that Norfolk Southern was responsible for operating, inspecting, and safely delivering all railcars. Following the verdict, the company said it was satisfied with the outcome, which confirms its belief that the railroad bears full responsibility.

Norfolk Southern Responds with Disappointment

Norfolk Southern expressed disappointment in the jury’s decision but emphasized that it remains committed to supporting the affected community. The railroad pointed out that it has been covering all costs associated with the derailment for over two years. Norfolk Southern maintained that GATX should share in the responsibility and be held accountable for the accident.

OxyVinyls Reaches Separate Settlement

Last week, chemical manufacturer OxyVinyls reached a separate, confidential settlement with Norfolk Southern related to the same derailment case. The resolution followed concerns raised by the railroad’s attorneys over inconsistent information provided by OxyVinyls about the necessity of a controversial vent-and-burn operation. According to the National Transportation Safety Board (NTSB), the burn, which released toxic vinyl chloride, was ultimately unnecessary. Investigators found that the tank cars were cooling and the railroad disregarded OxyVinyls’ expert advice.

Debate Over Railcar Maintenance

Norfolk Southern also argued that GATX should have been more proactive in maintaining its railcar, particularly since it had been exposed to floodwaters during Hurricane Harvey in 2017. The railroad suggested the flood may have compromised the bearings and that GATX should have addressed any damage. However, GATX responded that it complied with all maintenance regulations and that if any issues had existed, Norfolk Southern should have identified and repaired them.

Final Cause: Overheating Bearing

The NTSB’s investigation confirmed the derailment resulted from a failed bearing on the GATX railcar. Although trackside sensors detected the bearing was heating up, it did not reach the temperature needed to trigger an alarm until moments before the crash, leaving the crew with little time to react.