An Ohio jury has determined that GATX, the company that owned the railcar involved in the catastrophic East Palestine train derailment in 2023, will not be responsible for contributing to the $600 million settlement agreed upon by Norfolk Southern and local residents.
The jury’s decision on Wednesday found that GATX is not liable, despite the derailment being caused by a bearing failure on its railcar, which was transporting plastic pellets on February 3, 2023. GATX has argued that Norfolk Southern was in charge of operating and inspecting the train and its railcars, and thus was responsible for the safe delivery of the cargo.
In response to the ruling, GATX released a statement expressing satisfaction with the outcome, emphasizing that it supports their long-standing position that Norfolk Southern is solely accountable for the derailment and the subsequent damage in East Palestine.
Norfolk Southern expressed disappointment with the verdict but indicated it will not affect their obligations to those impacted by the derailment. In their statement, the railroad company highlighted their ongoing commitment over the past two years to cover the costs related to the incident while acknowledging their responsibility. They reiterated their belief that GATX should share in this responsibility.
Following the derailment in East Palestine, a variety of chemicals were spilled and ignited. Three days later, officials executed a controlled release of five tank cars containing vinyl chloride to prevent possible explosions. This operation produced a significant black smoke plume, prompting evacuations in the area.
Norfolk Southern had previously lost a similar court case, where it sought to compel GATX and OxyVinyls, the producer of the vinyl chloride, to contribute to the environmental cleanup expenses, which have surpassed $1 billion for the Atlanta-based railroad. The arguments made in this trial mirrored those in the previous lawsuit.
These legal proceedings do not influence the amounts received by the residents or the village of East Palestine from their settlements with the railroad; they solely determine which company will provide the funds.
Recently, OxyVinyls reached a settlement with Norfolk Southern in relation to the class-action lawsuit; however, the details remain undisclosed. The settlement came after Norfolk Southern’s legal team questioned the consistency of the information OxyVinyls provided regarding the necessity of the vent-and-burn operation.
The National Transportation Safety Board confirmed through its investigation that the vent-and-burn procedure was unnecessary, as the tank cars were beginning to cool, and it criticized the railroad for ignoring expert advice from OxyVinyls and failing to communicate these expert opinions to decision-makers.
Norfolk Southern contended that GATX should have maintained its railcar more diligently, particularly following potential damage from floodwaters. GATX, however, stated that it adhered to all relevant regulatory requirements for railcar maintenance and argued that any damages incurred should have been identified and repaired by the railroad, with GATX billed for those repairs.
The National Transportation Safety Board reported that the derailment was triggered by the failure of an overheating bearing on GATX’s railcar. Although the railroad’s sensors detected the bearing heating up prior to the derailment, it did not reach a critical temperature to trigger an alarm until just before the accident, leaving the crew with insufficient time to stop the train.
