The company that owned the railcar that derailed in East Palestine, Ohio, in February 2023, spilling toxic chemicals and setting off a massive fire, will not have to help pay a settlement with the town. A jury ruled Wednesday, April 23, that GATX is not liable for any part of the $600 million settlement between Norfolk Southern and East Palestine’s residents, The Associated Press reported.
Norfolk Southern was the company responsible for operating and inspecting the train.
What happened?
The train derailed on Feb. 3, 2023 when a bearing failed on one of its railcars carrying plastic pellets and caused a pileup and chemical spills that led to a fire.
Three days later, officials blew open five tank cars filled with vinyl chloride as they feared those cars might explode. This led to a massive black plume of smoke spreading over the area, forcing residents to evacuate.
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In June 2024, the National Transportation Safety Board (NTSB) said the decision to release and burn toxic chemicals from five derailed train cars may have been unnecessary. In its final meeting on the incident, NTSB investigators attributed the decision to a miscommunication of risk by the railway and its contractors.
A new lawsuit filed in February 2025 accused Norfolk Southern and its contractors of mishandling cleanup efforts, and was the first to claim people died as a result of the derailment disaster. The wrongful death lawsuit does not give details on who died and how, except to claim a one-week-old baby was among the victims.
What’s Norfolk Southern saying?
Norfolk Southern called the jury’s verdict “disappointing,” but said it won’t affect how much money residents or the village of East Palestine will receive from their settlements with the railroad.
However, it could still be years until East Palestine residents get their payouts. That’s because at least one of the plaintiffs involved is appealing the settlement. They’re challenging whether the $600 million settlement gives enough money to each of the residents impacted.
Have there been other settlements?
In January, the town of East Palestine and Norfolk Southern agreed to a $22 million settlement that resolved all the village’s claims stemming from the derailment.
The money will go toward projects that East Palestine officials identify as connected to the train crash. According to January’s settlement, around $13.5 million of the $22 million had already been paid by Norfolk Southern to the village.
Norfolk Southern also already promised $25 million for other improvements to East Palestine City Park.
The rail company and town had agreed on a proposed regional safety center in the village but determined it would not be workable. Instead, Norfolk Southern agreed to transfer the 15 acres that would have been used for the center to the town, and also said it would continue to provide training for local first responders.
Norfolk Southern agreed in 2024 to pay the federal government more than $310 million in a settlement related to the disaster.
The money will go toward past and future cleanup costs from the disaster. The company has to pay for the monitoring of drinking water and groundwater, as well as 20 years of medical exams for the community and alleged violations to the Clean Water Act.
