Residents affected by the East Palestine derailment last year may still be eligible to receive personal injury payments despite the majority of their $600 million class action settlement with Norfolk Southern railroad being on hold pending an appeal. The settlement, approved by a federal judge last month, includes provisions allowing for personal injury payments to proceed while the appeal process unfolds.
While the exact amount of the settlement fund allocated for personal injury payments remains undisclosed, residents within 10 miles of the train crash site are eligible for up to $25,000 each if they waive the right to sue for future health conditions. Additionally, households within two miles of the derailment may receive up to $70,000 for property damage, with decreasing payments based on proximity to the crash site.
Notably, the $162 million in legal fees approved by the judge will remain unchanged unless the settlement is overturned on appeal. However, the total amount each resident will receive is still uncertain, as claims are under review and subject to deductions for prior aid received from Norfolk Southern.
Despite administrative expenses already totaling $18 million, additional costs are expected to arise due to the separate handling of personal injury payments. The appeal process has seen mixed reactions from residents, with some expressing frustration over potential delays in receiving settlement checks.
While initial objections to the settlement were raised by a small group of residents, recent appeals filed by others have sparked further debate within the community. Concerns have been raised regarding the adequacy of information provided to residents about the contamination risks and health hazards resulting from the derailment.
Plaintiffs' lawyers have defended the settlement, emphasizing the research conducted and expert consultations involved in determining the compensation amounts. Despite criticisms of the personal injury payment being insufficient, the lawyers maintain that residents should trust the process.
In a separate federal settlement, Norfolk Southern agreed to pay $25 million for 20 years of medical exams for residents, but no provisions were made for treatment of potential illnesses. This agreement is pending final approval.
