Counsel: Overwhelming support for EP settlement
EAST PALESTINE — According to Tuesday’s filing by lead counsel that brokered the $600 million class action settlement between Norfolk Southern and East Palestine residents to remedy damages caused by last year’s train derailment, community members have “overwhelmingly” supported the deal.
“As today’s filing makes clear, the community’s response to the settlement has been overwhelmingly positive,” attorneys Seth A. Katz, M. Elizabeth Graham and Jayne Conroy of Simmons Hanly Conroy said in a joint statement. “While thousands of claims have already been submitted, we encourage all members of the community to file immediately ahead of the Aug. 22 deadline to ensure they receive every benefit they are entitled to from this settlement.”
The document filed in Younsgtown’s U.S. District Court points out that less than 200 of the nearly 200,000 households eligible have opted out by the July 1 deadline.
“Of the estimated 1,929 households in East Palestine, only 22, or 1.1% of, households within East Palestine have opted out, and only 173 households, or .09%, of the estimated 190,887 households in the Settlement Class, opted out,” the filing reports.
The document also states that just 15 objections were filed in opposition of the settlement, with only two filed before the deadline (July 1) had passed. The docket reflects that 41 objections were made, but confirms that just two were made within the structured timeline.
Tuesday’s filing was a response to a motion that was attached to the successfully-filed objections requesting an extension for the opting-out deadline, which was also set as July 1.
The rebuttal from lead counsel argues that residents had ample time to consider whether they wanted to participate in the class action settlement, and stated that extending the deadline would “assure that payments to the community cannot occur in 2024 should the settlement be finally approved” and that residents’ “lives have been disrupted for over two years who need, and deserve, timely compensation for their losses.”
The filing also addressed concerns raised in the objections that residents must opt-in by filing a claim and giving up their right to sue Norfolk Southern and a long list of other third parties before knowing how much their settlement is.
Lead counsel assert that is typical with class action lawsuits and common with the allocation process. Settlement awards will be determined by a weighted criteria that takes into consideration among other things location / distance from the derailment site, household composition (number of adults and children), length of time displaced or located, time missed from work and out-of-pocket expenses.
“As is the nature of class actions, final amounts for each household cannot be determined until the claims process has been completed, all claims have been reviewed, participation is decided, and funds have been earmarked for distribution based on points allocated to each claim,” the rebuttal states. “Class counsel explained that ‘precise estimates of class member awards’ could not be determined until the claims process was complete.”
It further argues that extending the deadline will not lead to the disclosure of individual awards any sooner.
“In other words, allowing additional time for settlement class members to opt-out will, unfortunately, not allow plaintiffs or class counsel to provide objectors or other settlement class members with a definitive award,” it states. “Instead, it will delay the determination of award amounts for settlement class members, and delay the process of distributing money to settlement class members.”
Ultimately, the filing said the opposition of a few should not supersede what the majority of residents support.
“This schedule is consistent with class plaintiffs’ goal of getting fair and timely relief to the settlement class members by year’s end,” it reads. “The voices of an extremely small minority of objectors should not thwart that effort.”
Eligible class members — residents, property owners and businesses located within 20 miles of the derailment site on Feb. 3, 2023 — have until Aug. 22 to file a claim to receive a part of the settlement. As it stands (and with Judge Benita Pearson yet to rule on the motion to extend the deadline to withdraw from the class action suit), opting-out is no longer an option. Class members who did not officially opt-out through the court by the July 1 deadline have already given up the right to sue the railroad or any third party listed on court documents at a later date or on an individual basis.
For information on the settlement, visit eastpalestinetrainsettlement.com or call the claims center at 833-425-3400.
selverd@mojonews.com