YOUNGSTOWN, Ohio — GATX, the rail equipment leasing company that owned one of the railcars in the East Palestine, Ohio, derailment, will not have to pay a portion of Norfolk Southern’s $600 million settlement with residents.
After a trial that lasted more than three weeks, a federal jury in Youngstown on Wednesday found GATX Corp. not liable in the settlement for damages caused by the Feb. 3, 2023, derailment and chemical release.
“GATX is pleased with the trial outcome, which affirms what we have known for some time: Norfolk Southern alone is responsible for the derailment and resulting damage in East Palestine,” the company said in a statement, according to The Associated Press.
The derailment and vent-and-burn release of toxic vinyl chloride led to the evacuation of thousands of area residents. Norfolk Southern agreed to a $600 million settlement to resolve a class-action lawsuit brought by residents and businesses affected by the incident.
The National Transportation Safety Board determined that the “catastrophic failure” of a bearing on a GATX-leased covered hopper car led to the derailment and chemical release. It also determined the vent-and-burn procedure was unnecessary [see “NTSB issues 31 new recommendations …,” Trains News Wire, June 25, 2024].
The company maintained Norfolk Southern operated and inspected the train and all the cars and was responsible for delivering the cargo safely.
Officials for Norfolk Southern said the verdict was disappointing but won’t change the railroad’s commitments to everyone affected by the derailment.
“For more than two years, Norfolk Southern has paid the costs related to the derailment while acknowledging and acting on our own responsibility for the accident,” Norfolk Southern said in an email. “Our belief has always been that GATX shares in that responsibility and should also be held to account. While today’s verdict on our claims against GATX is disappointing, it does not affect our ongoing commitments in East Palestine.”
Norfolk Southern and OxyVinyls, the chemical company that made the vinyl chloride that was released and burned after the derailment, announced an agreement April 17 about how much each side will help pay for the $600 million settlement.
The settlement details between Norfolk Southern and OxyVinyls were not disclosed.
Still pending is a February lawsuit against NS and other defendants including seven wrongful death claims [see “Lawsuit blames seven deaths …,” News Wire, Feb. 4, 2025].
— This article originally appeared at FreightWaves.com.
