In February 2023, a major disaster occurred in East Palestine, Ohio, when a Norfolk Southern freight train derailed. Now, a legal battle is underway over who will pay the cost of a $600 million settlement. The case is set to begin a jury trial in the Youngstown District Court in the United States on March 31, 2025.
Norfolk Southern Takes Target on GATX and OxyVinyls
Norfolk Southern is seeking to recover a large settlement from the accident from GATX and OxyVinyls. Norfolk Southern blames GATX for railcar maintenance failures that led to the accident. The company claims that the railcar’s roller bearing was damaged after Hurricane Harvey in 2017, and that failure led to the accident.
OxyVinyls is accused of shipping vinyl chloride with an incorrect Safety Data Sheet, a mistake Norfolk Southern claims caused the train to burn dangerously.
Court Debates: Who is Responsible?
In this case, the jury will consider whether GATX and OxyVinyls were negligent. Norfolk Southern wants to determine each company's role in the accident. GATX argues that Norfolk Southern should have noticed the faults in the rail cars sooner. OxyVinyls also argues that the safety data sheets were compliant with federal regulations and that they are not responsible for the burn.
The $600 Million Deal and Future Impacts
Norfolk Southern is demanding that GATX and OxyVinyls split the $600 million settlement, claiming it overpaid, and legal experts say the disputes over railcar maintenance and chemical handling will be intense in court.
The case could reshape how companies share costs after major train accidents, affecting future safety and liability standards across the country. Additionally, residents and businesses affected by the accident in East Palestine are closely following the case’s progress, seeking answers about who will pay for their losses.
The court, presided over by Judge Benita Y. Pearson, will hear weeks of testimony to consider complex claims whose outcome has the potential to impact the railroad and chemical industries for years.
