Residents, property owners, and businesses located within 20 miles of the Derailment Site in East Palestine, Ohio sued, among others, Norfolk Southern Corporation and Norfolk
Southern Railway Company for losses suffered from the Norfolk Southern train Derailment that
occurred on
February 3, 2023, including the controlled “vent and burn” of five railcars that occurred on February 6,
2023 (collectively, the "Incident").
Capitalized terms on this website have the definition provided in the Settlement Agreement.
For questions regarding chemical exposure, please click here for answers from a physician working with plaintiffs’ counsel.
WHO IS INCLUDED?
You are included as a Settlement Class Member if you lived, worked, owned property, or owned or operated a business within 20 miles of the Derailment Site from February 3, 2023 to April 26, 2024.
1. What is this lawsuit about?
This class action lawsuit seeks to recover money for the people and businesses harmed by the February 3, 2023, derailment of Norfolk Southern Train 32N, including the “vent and burn” of five railcars on February 6, 2023 (collectively, the “Incident”). The Honorable Benita Y. Pearson of the United States District Court for the Northern District of Ohio is the judge overseeing this case, called In re: East Palestine Train Derailment,Case No. 4:23-cv-00242. In the lawsuit, the Plaintiffs allege that Norfolk Southern (among others) caused the Incident and, as a result, the Class suffered real property damage, personal property damage, displacement expenses, lost wages, loss of business income, diminution of property value, increased risk of disease, emotional distress, disruption, inconvenience, loss of use and enjoyment of property and loss of goodwill. Norfolk Southern denies the claims asserted in the lawsuit and denies any wrongdoing, including that it violated any law.
2. Who are the lawyers representing the Settlement Class?
The Court appointed the following lawyers to represent you and the other Settlement Class Members: Seth A. Katz of Burg Simpson Eldredge Hersh & Jardine, P.C.; M. Elizabeth Graham of Grant & Eisenhofer P.A.; and Jayne Conroy of Simmons Hanly Conroy. The Court also appointed T. Michael Morgan of Morgan & Morgan, P.A. as a Co-Lead Counsel.
These firms are called Co-Lead and Class Counsel. Class Counsel was selected by the Court due to their proven experience and extensive track record. You will not be charged individually for their services; if approved by the Court, Co-Lead and Class Counsel will be compensated from the Settlement. A copy of Co-Lead and Class Counsel’s Motion for Attorneys’ Fees and Expenses will be available by September 6, 2024.
3. Am I part of the Settlement Class?
You are a Settlement Class Member if you resided, worked, owned property, or owned or operated a business within 20-miles of the Derailment Site from February 3, 2023 to April 26, 2024. You are excluded from the Settlement Class if you are a director or duly elected and approved officer of Norfolk Southern, or any of its parents, subsidiaries, or affiliates; Norfolk Southern employees, and contractors of Norfolk Southern and their employees, who were specifically sent by Norfolk Southern to the area in and around the Derailment Site to respond to the Incident and do not otherwise fall within the definition of Settlement Class; Norfolk Southern’s Counsel; Class Counsel; a government, political subdivision, public entity, or public agency; and the judge presiding over this Action and the judge’s staff. If you are unsure whether you are part of the Settlement Class, a list of eligible addresses within 20-miles of the derailment site is available here.
4. What does the Settlement provide?
The Settlement creates a $600 million Settlement Fund to make: (1) cash payments to Settlement Class Members; and (2) Court-approved payments for Settlement administration, attorneys’ fees and expenses, and Class Representative Awards. Class Counsel will request attorneys’ fees of up to 27% of the Settlement Fund ($162,000,000), settlement notice and administration costs and attorneys’ costs and expenses up to 3% of the Fund ($18,000,000), and a $15,000 award to each of the Class Representatives. The Court may award less than these amounts.
To be eligible for a monetary award from the Settlement, Settlement Class Members must submit a Claim Form(s) (see FAQ 6 below). The amount each individual Settlement Class Member will receive will be determined through a Court-supervised claims process. Not all Settlement Class Members will receive the same amount. You do not need to hire a lawyer to participate in the Settlement.
This Settlement is separate from Norfolk Southern’s ongoing remediation of East Palestine and the surrounding area, as well as claims made by state and federal agencies for, among other things, environmental clean-up.
5. What payments can I get from the Settlement?
After deductions for approved Class Counsel's Fee Award, Class Representative Service Awards, and Administrative Expenses, the remaining funds will be distributed to Settlement Class Members in the following ways depending on category: (1) Court-approved direct payments to individuals (“Direct Payments”); or (2) itemized compensation for actual net business losses (“Business Loss Payments”). In addition, for those Eligible Settlement Class Members within 10 miles of the derailment site who voluntarily choose to participate, Settlement Class Members may also submit Claims for personal injury payments (“Personal Injury Payments”) for which they may receive additional Court-approved lump sum payments in exchange for releases of past, present, and future Personal Injury Claims arising out of the Incident. The payment options provided by the Settlement are detailed below and more information is available on this Settlement Website.
Direct Payments
Individual Settlement Class Member households can receive a lump sum Direct Payment from the Settlement Fund based on a Court-approved formula that takes into account a number of factors, including geographic location, household size, acreage, length of displacement, and the nature of property damage, if any. Using these factors, the Settlement Administrator will base your payment on how severely your life was disrupted and any resulting increased risk of future disease. Below are the potential, average lump sum payment amounts based on proximity to East Palestine, Ohio, for households that participate in the Settlement:
Distance
Estimate per Household
0-2 Miles
Approximately $70,000
2-4 Miles
Approximately $45,000
4-7 Miles
Approximately $30,000
7-10 Miles
Approximately $15,000
10-15 Miles
Approximately $500
15-20 Miles
Approximately $250
In order to receive a Direct Payment, you must submit a Claim Form. Direct payments will be reduced by any payment you already received from Norfolk Southern. If, after everyone sends in Claim Forms, the compensation claims total more than $600 million, net of all other expenses under the Settlement, the payments will be reduced. If the compensation claims are less than $600 million net of costs, the payments will be increased and/or additional payments will be made.
Extraordinary Loss or Damage Payments
Individual Settlement Class Members who have extraordinary claims for uncompensated losses or damages may also submit claims for additional compensation. Claims for extraordinary losses or damages must be supported by dated documentation. The Settlement Administrator will conduct a detailed review of these claims, which will significantly delay the payment of the Direct Payment, including any additional payment for extraordinary loss or damage.
Personal Injury Payments
Settlement Class Members who were physically located within 10 miles of the Derailment Site may also receive additional lump sum Personal Injury Payments (“Eligible Personal Injury Settlement Class Members”). In evaluating claims for Personal Injury Payment, the Settlement Administrator will use objective, Court-approved criteria like the nature of any physical injury and resulting medical treatment, if any, to allocate funds to each Eligible Personal Injury Settlement Class Member. Settlement Class Members who choose to submit a Claim for Personal Injury Payment will be required to separately execute releases of all past, present, or future Personal Injury Claims, known and unknown, related to or arising from the Incident (“Personal Injury Release”). To the extent an Eligible Personal Injury Settlement Class Member is a minor (under 18), additional terms apply, including that any Personal Injury Payments will only be made in accordance with applicable court orders.
Submission of a Claim for Personal Injury Payment is strictly voluntary; you are not required to submit a Claim for Personal Injury Payment to otherwise receive any other benefits under the Settlement, if eligible. Additional information about the Personal Injury Payments, including an example of the required Personal Injury Release, is available here. Below are the potential, average payment amounts based on proximity to East Palestine, Ohio, for individuals that submit a Claim for Personal Injury Payment:
Distance
Estimate per Person
0-2 Miles
Approximately $10,000
2-5 Miles
Approximately $5,000
5-10 Miles
Approximately $1,000
Extraordinary Injury Payments
Eligible Personal Injury Settlement Class Members who believe they have extraordinary claims for uncompensated injury may also submit claims for additional compensation. Claims for extraordinary injury must be submitted on an individual basis and must include itemized injuries supported by dated documentation. The Settlement Administrator will conduct a detailed review of these claims, which will significantly delay payment of the Personal Injury Payment, including any additional payment for extraordinary injury.
Actual Net Business Loss Payments
Settlement Class Members that are Businesses may only submit an itemized compensation claim by submitting a Claim Form. The Settlement Administrator will conduct a detailed review of itemized compensation claims, allocating funds for the actual net business losses caused by the Incident. Settlement Class Members that are Businesses will have their potential award, if any, reduced by the amount of any payment already received from Norfolk Southern or other sources.
* * *
If the Settlement is approved, whether you submit a claim for Direct Payments, Actual Net Business Loss Payments, object, or do nothing, you will not be able to sue, continue to sue, or be part of any other lawsuit against Norfolk Southern relating to the claims that were or could have been asserted in the First Amended Master Consolidated Class Action Complaint, a copy of which is available here.
6. How can I receive a payment?
To qualify for payment, you must timely submit a Claim Form. Read the instructions carefully. You can submit the completed Claim Form by mail to In re: East Palestine Train Derailment Settlement, c/o Kroll Settlement Administration LLC, PO Box 5324, New York, NY 10150-5324. If the Court approves the Settlement, payments may start to go out as soon as December 2024 but, at this time, the timing of payments and method of distribution are unknown. The timing of distributions is contingent on may factors including the timing of final approval and there may be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. We will continue to send requests for additional information in the coming weeks and we will send payment updates once those are available. Please be patient and continue to check this Settlement Website for additional information and updates.
7. How do I get out of the Settlement?
You may opt out of the Settlement by mailing an opt out request to the Settlement Administrator at:
In re: East Palestine Train Derailment Settlement
Attn: Exclusions
c/o Kroll Settlement Administration LLC
PO Box 5324
New York, NY 10150-5324
Settlement Class Members who desire to opt out of the Settlement must mail a written request to opt out stating that they seek exclusion from the Settlement and providing their: (1) name; (2) address; (3) telephone number; (4) e-mail address; (5) Claim ID, if applicable; and (6) information regarding their attorney, if any.
To be valid and effective, an original request for exclusion must be signed by the Settlement Class Member, not by the Settlement Class Member’s attorneys, if any, or anyone else. Mass or group opt-outs are not permitted, and each Settlement Class Member may only opt out on behalf of himself, herself or itself. Electronic signatures (other than DocuSign) are not valid and effective.
The opt-out request must be postmarked no later than July 1, 2024, or it will be denied as untimely and invalid.
8. What happens if I do nothing at all?
If you take no action at all, you will get no Settlement payment or benefit, but you will have given up your right to start a lawsuit, continue a lawsuit or be part of any other lawsuit against Norfolk Southern relating to the Incident. However, any Personal Injury Claim you may have arising out of the Incident against Norfolk Southern will not be affected even if you do nothing. Medical monitoring and mental or emotional injury or harm are not Personal Injury Claims.
9. When will the Court decide whether to approve the Settlement?
The Court will hold a Final Approval Hearing on September 25, 2024, at 10:00 a.m. at the Thomas D. Lambros Federal Building and United States Courthouse, 125 Market Street, Youngstown, Ohio 44503. At this hearing, the Court will consider whether the Settlement Agreement and proposed Settlement is a fair, reasonable and adequate resolution of the lawsuit. If there are timely and properly submitted objections, the Court will consider them and any response Plaintiffs and Norfolk Southern may have to those objections. The Court may listen to people who have asked to speak at the hearing. Unless you have objected to the Settlement and asked to speak at the Final Approval Hearing, it is not necessary for you to attend to receive a Settlement payment. At or after the hearing, the Court will decide whether to approve the Settlement. The Court will also decide how much Class Counsel and Class Representatives will be paid from the Settlement Fund, and will make an award for approved litigation, Notice and Settlement Administration costs. If the Court ultimately does not approve the Settlement, or if the Court’s approval is reversed on appeal or the Settlement Agreement is terminated, then the Settlement will become null and void. If the Settlement becomes null and void, the case will proceed as though the Settlement Agreement was never entered into.
10. Are more details about the Settlement available?
Yes. This Settlement Website simply summarizes the proposed Settlement. The specific details are in the Settlement Agreement and other case documents. You can get a copy of these and other documents on this Settlement Website found here, by calling (833) 425-3400 or by accessing the docket in this case through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.ohnd.uscourts.gov.
11. What if my address or contact information changes?
It is your responsibility to contact the Settlement Administrator by calling (833) 425-3400, visiting the Contact section of this Settlement Website, or mail the Settlement Administrator at: In re: East Palestine Train Derailment Settlement, c/o Kroll Settlement Administration LLC, PO Box 5324, New York, NY 10150-5324.
All current dates and deadlines are available on this Settlement Website, although dates may be subject to change with approval of the Court. You may also contact the Settlement Administrator by phone at (833) 425-3400 or email at [email protected]. Do not contact Class Counsel or the Court to request any additional information.
12. Will I need to pay taxes on the money I receive from this Settlement or that I received from Norfolk Southern already?
Most people who received money from Norfolk Southern will not need to pay taxes on the money they received. Payments for lost income, for business losses, or payments the railroad made to get access to land during the cleanup, may be taxable.
13. What should I do if I already paid taxes on the money I received?
You should consult with a tax professional to discuss if you are eligible for a refund.
14. Do I need proof of injury to participate in the Personal Injury program or to receive payment for Personal Injury?
No. The Settlement assumes that everyone physically present within 10 miles of the derailment is qualified to receive an additional payment for personal injury in exchange for a release of these claims. In other words, unlike a traditional lawsuit, if you were physically present within 10 miles of the derailment, you do not need to prove that you suffered a bodily injury in order to participate.
15. What is the difference between the Department of Justice (DOJ) Settlement and the Norfolk Southern Settlement?
The DOJ Settlement (also known as a consent decree) is separate and apart from the class action lawsuit. The DOJ Settlement totals $310 million. There is a medical monitoring program included in the proposed consent decree between the DOJ and Norfolk Southern that is separate from this litigation and settlement.
16. Why is there no medical monitoring in this Settlement?
The court overseeing this litigation determined medical monitoring program is not available under Ohio law. The Settlement allows for Personal Injury payments to help cover any potential long-term health expenses. A settlement reached between the Department of Justice and Norfolk Southern will provide certain members of the community with medical monitoring.
17. Why will residents receive different amounts from the $600 million?
In pursuing a fair and equitable distribution of funds, the $600 million is not divided evenly but through a method of allocation that concentrates the funds towards those most affected by the derailment. There is also an "extraordinary loss or damage" fund for those who have significant injuries and would like to seek higher payment.
18. Why should I file a Personal Injury claim?
Filing a Personal Injury claim ahead of the deadline guarantees immediate compensation without the risks of continued litigation, nor do you need to prove whether your medical condition (if you ever develop one) is related to the derailment.
Eligible community members located within 10 miles of the derailment must choose to opt in to this portion of the Settlement and submit a claim by August 22, 2024, 11:59 pm ET, to receive Personal Injury payments.
19. Do you need to have documented injuries to file a Personal Injury claim?
You do not need proof of injury to participate in the Personal Injury program; you just need to submit a form listing your symptoms and other health effects. The Settlement assumes that everyone physically present within 10 miles of the derailment is qualified to receive an additional payment for Personal Injury in exchange for a release of these claims.
20. Do you need to hire a lawyer?
No, you do not need to hire a lawyer. The Court appointed the following lawyers to represent you and the other Settlement Class Members: Seth A. Katz of Burg Simpson Eldredge Hersh & Jardine, P.C.; M. Elizabeth Graham of Grant & Eisenhofer P.A.; and Jayne Conroy of Simmons Hanly Conroy. The Court also appointed T. Michael Morgan of Morgan & Morgan, P.A. as a Co-Lead Counsel.
21. Who is included?
You are a Settlement Class Member if you resided, worked, owned property, or owned or operated a business within 20-miles of the Derailment Site from February 3, 2023, to April 26, 2024. You are excluded from the Settlement Class if you are a director or duly elected and approved officer of Norfolk Southern, or any of its parents, subsidiaries, or affiliates; Norfolk Southern employees, and contractors of Norfolk Southern and their employees, who were specifically sent by Norfolk Southern to the area in and around the Derailment Site to respond to the Incident and do not otherwise fall within the definition of Settlement Class; Norfolk Southern’s Counsel; Class Counsel; a government, political subdivision, public entity, or public agency; and the judge presiding over this Action and the judge’s staff.
22. What can you get?
The Settlement provides $600 million to pay valid Claims. The amount you are eligible to receive from the Settlement may depend on, among other things: Where you live, Household size, Acreage, Length of displacement, Property damage, Compensation based on Exposure or Personal Injury.
The factors that determine how much each household will receive include proximity, number of residents in the household, the age of the residents, the size of the property, and the length of displacement. Households located within 0-2 miles of the derailment can expect average compensation of approximately $70,000. The amount decreases with distance: households 2-4 miles away may receive approximately $45,000, those 4-7 miles away approximately $30,000, those 7-10 miles away approximately $15,000, those 10-15 miles away approximately $500, and those 15-20 miles away approximately $250. These payments will be paid as a lump sum.
23. Summary of Appeal
The In re: East Palestine Train Derailment Settlement, Case No. 4:23CV0242, is currently on appeal. The appeal was filed on behalf of four class member and is pending before the United States District Court of Appeals, 6th Circuit. As a result of the appeal process taking place, Direct Household payments and Business payments are on hold until all appeals are resolved. The Settlement appeal process does not impact the Personal Injury payments that are currently being calculated and distributed. You can view the appeal by clicking here.
24. Who is Kroll?
Kroll Settlement Administration is a neutral, third-party, administration firm appointed by the Court to administer the Settlement based on the terms in the Settlement Agreement and other Court documents.
25. Is Kroll affiliated with any attorneys?
No, Kroll is not affiliated with Class Counsel nor Defense Counsel. Kroll Settlement Administration is a neutral, third-party, administration firm appointed by the Court.
26. How did Kroll determine terms of the Settlement and the plan of distribution?
Kroll had no role in determining the terms or the Settlement and Plan of Distribution. Kroll is responsible for administering the Settlement per the terms of the Settlement Agreement, the Plan of Distribution and other Court orders.
27. What is the process for calculating Personal Injury Payments and issuing payments?
All Personal Injury claims are thoroughly reviewed for completeness, accuracy and validity.
Any Personal Injury claim that is deficient in any manner are sent a letter with instructions on how to cure (correct) the deficiency. Claimants are provided 45 days to respond to the deficiency letter. (If a claimant does not reply to the deficiency letter, and cure the deficiencies, their Personal Injury claim will be rejected.)
Personal Injury payment amounts are calculated in compliance with the Plan of Distribution. The Plan of Distribution can be found on Kroll’s website at https://eastpalestinetrainsettlement.com/files/Plan%20of%20Distribution.pdf
Personal Injury Releases are also reviewed and sign-off on by counsel.
Valid Personal Injury claimants are sent a Personal Injury payment determination letter. This letter details the amount of the Personal Injury payment, and provides the claimant instructions on how to appeal the payment amount if they choose.
Personal Injury claimants are provided approximately 2 weeks to accept or appeal/challenge the calculated Personal Injury payment amount. Claimants will also be provided the opportunity to provide banking details to receive the Personal Injury payment via ACH deposit.
Following the 2-week period to accept or appeal the Personal Injury payment, and if the payment amount is not challenged, Claimants are then either:
Sent their Personal Injury payment via ACH deposit;
Sent a check if their Personal Injury payment is $2,000 or less;
Sent a letter with instructions on how to set up an appointment to pick up their check at the Settlement Cetner if the Personal Injury payment is over $2,000
Personal Injury payment amounts that are challenged will go through the appeal process detailed in the Settlement Agreement.
28. What happens to the interest earned on the Settlement Funds?
Interest earned on the Settlement Fund is held for the benefit of Claimants, and the interest will be included in the payment amounts that are awarded to claimants.
29. Why was Kroll paid $20 million dollars when they have not issued all checks to claimants?
Kroll has not been paid $20 million.
Kroll is paid from the Settlement Fund for their time and expenses that are incurred for the administration services they perform under the Settlement.
ALL CLAIMS ARE DUE AUGUST 22, 2024 11:59 pm ET (DEADLINE HAS PASSED)
CONTACT US If you have any questions, please contact the Settlement Administrator. By Phone: 1-833-425-3400
By Email: [email protected] In Person: East Palestine Settlement Center, 191 E Rebecca St., East Palestine, OH 44413 Visit the FAQ page for more details.
This website is authorized by the Court, supervised by counsel to the parties, and controlled by the Settlement Administrator approved by the Court. This is the only authorized website for this case.
ALL CLAIMS ARE DUE AUGUST 22, 2024 11:59 pm ET (DEADLINE HAS PASSED)
CONTACT US If you have any questions, please contact the Settlement Administrator. By Phone: 1-833-425-3400
By Email: [email protected] In Person: East Palestine Settlement Center, 191 E Rebecca St., East Palestine, OH 44413 Visit the FAQ page for more details.
This website is authorized by the Court, supervised by counsel to the parties, and controlled by the Settlement Administrator approved by the Court. This is the only authorized website for this case.