Legal options laid out in derailment settlement
By STEPHANIE ELVERD
(Lisbon) Morning Journal
EAST PALESTINE — Legal counsel representing residents in the class-action settlement with Norfolk Southern reminded eligible class members that in order to receive an award from the historic $600 million deal, a claim form must be filled out.
The attorneys walked residents through the claims process during a virtual town hall meeting last week.
“This is the largest settlement involving a railroad of any sort in this country,” lead counsel Seth Katz said. “But we want to remind you that if you have not opted out, you must fill out a claim to receive any compensation. That claim must be submitted no later than Aug.22.”
Katz, along with co-counsel Elizabeth Graham, Adam Gomez and Michelle Kranz, hosted the Zoom meeting to discuss recent updates to the settlement, including an increase in what each resident stands to receive if they elect to participate in the personal-injury component. Initially, the damages for personal injury, which are limited to those who reside 10 miles or less from the derailment site, were estimated to be approximately $10,000 for those closest to ground zero. That number has more than doubled with $25,000 per person now expected. Personal injury estimates for other distances from the derailment site also increased — three to five miles ($15,000), five to seven ($5,000) and seven to 10 ($,2000).
“The original figures were accessed conservatively, but have been revisited,” Gomez explained. “The initial projections were ultra conservative. We never want to overpromise and underdeliver.”
Gomez said the change is a result of the claims received to date. With over a third of the claims submitted, adjusters now have a better idea of how the funds will be allocated to eligible class members. Gomez said that moving forward, the figure could change again, but would only increase.
The property damage or “direct payment” estimates remain the same. Those damages are open on a one-per-household basis to addresses within 20 miles of the derailment — zero to two miles from derailment ($70,000), two to four miles ($45,000), four to seven miles ($30,000), seven to 10 miles ($15,000), 10 to 15 miles ($500) and 15 to 20 miles ($250). Residents were reminded to consider all parcels they may own inside the eligible perimeter.
As for areas outside of the 20-mile radius, it was explained at an in-person meeting put on by Erin Brockovich’s group, East Palestine Justice, in April that contamination was “virtually non-existent” after 20 miles making the chance of success of claims from individuals outside of the radius “virtually non-existent” as well.
During last week’s virtual town hall, Dr. Chip Carson, a principal and toxicologist at Cincinnati-based Environmental Medicine Consultants, said test results indicate chemical exposure from the derailment was not high enough to anticipate prolonged medical impacts in the future. Carson said he “personally does not expect” to see an increase in cancer diagnosis as a result of the derailment.
Attorneys reiterated their belief that the settlement is fair and offers an immediate remedy and relief needed now by residents impacted by the derailment and chemical release.
A previous Ohio judicial ruling — Hirsch vs. CSX — determined that a potential increase in cancer is not a damage. That decision also ruled that medical monitoring is not a cause of action in Ohio. In other words, opting into the personal injury component may be a resident’s best shot in receiving compensation for medical injuries linked to the derailment. In a personal injury case, a plaintiff must establish causation — the cause and effect between one event and the result. The personal injury component in the class-action settlement does not require proof of injury. Personal injury payments are also expected no more than 30 days after the final approval hearing set for Sept. 25 and are not subject to the appeals process.
Katz also addressed concerns that the settlement was reached in April, months before the National Transportation Safety Board released its findings to the public after a year-long investigation into the derailment and vent-and-burn of vinyl chloride. Katz said NTSB’s findings were “not news to us.” On the contrary, he said that the NTSB relied on some of the information obtained through the class-action’s discovery to make its determinations in June. He also explained that the NTSB’s report could not be used as evidence as it was “not admissible” in court proceedings.
Residents had until Aug. 1 to opt-out of the class-action settlement and retain their right to sue Norfolk Southern and third parties for damages related to the derailment on an individual basis. With that deadline passed, residents within the 20 miles are now automatically opted in. Still, a claim form must be submitted by 11:59 p.m. on Aug. 22.
Residents were also reminded that they could opt in to the direct payment process and not make a personal injury claim. That would keep their option to sue Norfolk Southern for personal injury open. They were also reminded that if they made a direct payment claim without filing a claim for personal injury, they still have time to do so.
Household members can still elect to participate and receive a personal injury payment as “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.”
Attorneys also encouraged owners of businesses — “no matter how small” — within 20 miles of the derailment to file a claim to recoup any losses suffered as a result of the rail disaster.
Questions?
Residents can visit the East Palestine Settlement Center, located at 191 E. Rebecca St. in East Palestine, for more information on the Norfolk Southern class-action settlement or to submit a claim. Residents are encouraged to call the center at 833-425-3400 for more information or to schedule an appointment.
Have an interesting story? Email reporter Stephanie Elverd at selverd@mojonews.com.