Some East Palestine residents seeing funds from settlement
EAST PALESTINE — Three months after final approval of the $600 million settlement between Norfolk Southern and residents impacted by the 2023 train derailment, personal injury damages are finally starting to reach class members.
Personal injury claims were open to those who lived or worked within the first 10 miles of the derailment and are not subject to the appeal process that is holding up party damage payments.
Residents in the village, as well as Unity Township, Columbiana, New Waterford and communities in western Pennsylvania, reported receiving confirmation letters that disclose the amount awarded from the personal injury fund and directions to either pick up their checks at the Kroll Settlement Center on Rebecca Street in East Palestine or provide direct deposit information to have the money ACH transferred to a bank account.
Residents can receive up to $25,00 based on an allocation system that gives more weight to certain criteria — distance or direction of the spot of where the rail cars derailed, timing of physical presence in impacted areas, age at the time of the derailment, if symptoms were experienced, the severity of those of symptoms, medical treatment received and if a diagnosis was given by a physician.
Originally, the personal injury component allowed for up to $10,000 per individual closest to “ground zero.” In July, lead counsel announced that amount had more than doubled to $25,000 for those within 2 miles. Personal injury estimates for other distances from the derailment site also increased — 3 to 5 miles ($15,000), 5 to 7 ($5,000) and 7 to 10 ($2,000).
At the same time the increases were announced, it was also explained that the personal injury damages would not be subject to appeals and class members were told payments would be disbursed within 30 days of final approval which was later granted in late September. However, that process has been protracted with just a handful of letters received by the end of December.
This week, residents reported the largest number of letters delivered by postal mail with no rhyme or reason to how that process is being carried out. Some residents who filed as soon as the eligibility to do so was announced are still waiting. Others who filed a claim on the day of the deadline (Aug. 22) reported receiving letters. Distance also appears to have little impact. Some in town have received payments but most reported statements are from further out and for smaller amounts of $2,000 or less.
The personal injury payments are funded by $120 million set aside from the $600 million ($420 million after $180 million is deducted for attorney fees). Opting in to receive a personal injury payment, released Norfolk Southern and a long list of third-party entities from further liability related to the derailment, including any health implications that may arise in the future.