The company that owned the railcar implicated in the catastrophic East Palestine train derailment in 2023 will not be required to contribute to the $600 million settlement agreed upon by Norfolk Southern with the affected residents.
An Ohio jury determined on Wednesday that GATX is not liable for the settlement, even though the derailment on February 3, 2023, was provoked by a failed bearing on its railcar carrying plastic pellets. GATX has consistently argued that Norfolk Southern was responsible for operating and inspecting the train and its cars, assuring the safe delivery of the cargo.
GATX expressed satisfaction with the jury’s decision, stating it confirmed Norfolk Southern’s sole responsibility for the derailment and subsequent damages in East Palestine.
In contrast, Norfolk Southern expressed disappointment with the verdict but affirmed that it would not alter the company’s commitments to those impacted by the derailment. The railroad emphasized its continuous acknowledgment of its responsibility for the incident, underscoring its belief that GATX should share this accountability.
Following the derailment in East Palestine, various chemicals spilled and ignited. Three days later, officials executed a controlled release of vinyl chloride from five tank cars to prevent an explosion, resulting in a substantial black smoke plume over the area and prompting evacuations.
Norfolk Southern had previously lost a lawsuit attempting to compel GATX and OxyVinyls, the vinyl chloride manufacturer, to assist in the more than $1 billion environmental cleanup costs. The railroad made similar arguments in the current trial.
The outcome of these lawsuits does not affect the total settlement amount for residents or East Palestine village; it merely determines which company is financially responsible.
OxyVinyls recently reached a settlement with Norfolk Southern concerning their class-action lawsuit, after the railroad’s legal team highlighted inconsistencies in OxyVinyls’ information regarding the necessity of the vent-and-burn operation. Settlement details have not been disclosed.
The National Transportation Safety Board’s investigation concluded that the vent-and-burn was unnecessary, as the tank cars had started to cool, and Norfolk Southern failed to heed OxyVinyls’ expert advice or communicate these insights to decision-makers.
Norfolk Southern contended that GATX should have taken better care of its railcar, particularly as it had been exposed to potentially harmful conditions like flooding.
GATX maintained it adhered to all appropriate regulations concerning railcar maintenance. It argued that if the car had indeed been damaged six years prior during Hurricane Harvey, Norfolk Southern should have identified and repaired the defect, billing GATX for the related costs.
The National Transportation Safety Board attributed the derailment to the malfunction of an overheating bearing on GATX’s railcar. While the railroad’s sensors detected rising temperatures in the miles leading up to the incident, the bearing did not reach a critical threshold to trigger alarms until the moments before the crash, providing insufficient time for the crew to halt the train.
This report was originally published on Fortune.com.
