Norfolk Southern has filed a motion seeking to compel two other companies, GATX and OxyVinyls, to contribute to the cost of a $600 million class-action settlement resulting from a train derailment that occurred on February 3, 2023, near the Ohio-Pennsylvania border. The catastrophic incident involved the release and burning of toxic chemicals.
The trial is set to commence on Monday, focusing on Norfolk Southern's argument that GATX, the railcar owner, and OxyVinyls, a chemical manufacturer, share responsibility for the events in East Palestine, Ohio. Although the outcome of this lawsuit will not alter the compensation residents are due from the settlement, which has already been determined, it will influence which entity is ultimately responsible for covering the settlement costs.
Residents impacted by the derailment are still waiting for the bulk of their compensation due to ongoing appeals, although some payments have begun to be disbursed. The derailment led to an array of hazardous chemicals spilling and igniting, prompting officials, three days later, to detonate five tank cars filled with vinyl chloride to prevent potential explosions. This explosive action resulted in massive plumes of smoke engulfing the town and forced evacuations of residents.
Given the scale of the disaster, which is regarded as the worst rail accident since the 2013 Lac-Megantic tragedy in Canada, the incident has subsequently ignited a national conversation about railroad safety reform, leading to proposed legislative measures in Congress that ultimately failed to pass.
Norfolk Southern has previously attempted to hold GATX and OxyVinyls liable for the environmental cleanup costs arising from the derailment, a lawsuit which it lost last year. The railroad reasserts its position in the latest trial, emphasizing that it alone has borne the financial burden of the incident, despite evidence of shared responsibility among various stakeholders involved in hazardous material transport. Norfolk Southern asserts in a statement, "This trial is about reinforcing the role shippers and railcar owners play in transportation safety and ensuring everyone responsible pays their fair share."
From Norfolk Southern's perspective, GATX is partially culpable for the derailment as it is the owner of the railcar that malfunctioned due to an overheating bearing, which ultimately caused 38 cars to derail. Additionally, Norfolk Southern contends that OxyVinyls should share in the costs due to alleged provision of inconsistent and misleading information regarding the vinyl chloride in question prior to the decision to vent and burn the material.
In response, both GATX and OxyVinyls argue that it is unreasonable to attribute responsibility for the derailment to them, given that Norfolk Southern was the train's operator and responsible for its inspection and the safe delivery of its cargo. GATX maintains, "Norfolk Southern’s claims against us are baseless," asserting compliance with all regulations regarding the maintenance of its railcars and suggesting any existing issues should have been noted and rectified by Norfolk Southern.
The National Transportation Safety Board (NTSB) concluded that the derailment was caused by the failure of the overheating bearing on GATX's railcar, though Norfolk Southern's systems failed to sufficiently identify the problem prior to the derailment. Furthermore, the NTSB verified that the decision to vent and burn the vinyl chloride was based on unnecessary assumptions, as the tank cars were cooling off, contrary to earlier assessments that had informed the emergency actions taken.
The trial is expected to last two to three weeks, and it is anticipated that the proceedings will shed light on the responsibilities and liabilities of the companies involved in this critical transportation incident.
