A high-stakes jury trial is underway in Ohio federal court to determine whether GATX and OxyVinyls should reimburse Norfolk Southern (NS) for some or all of a $600 million class-action settlement tied to the 2023 East Palestine derailment.

The Backstory

• In April 2024, NS agreed to the class payout after months of litigation over the derailment that led to chemical fires and allegations of widespread community harm. NS brought OxyVinyls and GATX into that mass litigation before it settled with the plaintiff class. Now, NS wants GATX (owner of the tank car with the failed wheel bearing) and OxyVinyls (shipper of the chemicals) to foot the bill.

Framing the Trial: Opening Statements

• GATX: In opening statements on Tuesday, April 1, NS’s attorney said a defective roll bearing caused the derailment. She stated that that the bearing wore out prematurely because it was subject to flooding during Hurricane Harvey, when the train car was parked in Texas during August of 2017. GATX’s attorney responded in opening that the train car was not damaged in the flood as NS claims, and that photographs and records will support the lack of damage.
• OxyVinyls: NS blamed OxyVinyls for providing a flawed safety data sheet to NS and others who relied on that information in deciding whether to vent and burn the rail cars. OxyVinyls’ attorney said in her opening that OxyVinyls was present at the scene of the derailment and told NS that the feared chemical explosion “could not happen.” She also suggested that the derailment would not have happened if NS had better train monitoring in place.

Trial Details

• Trial began on March 31, 2023 in the Youngstown division of the U.S. District Court for the Northern District of Ohio.
• U.S. District Judge Benita Pearson, who also approved the $600 million class action settlement, is presiding.
• Testimony thus far has focused in large part on theories of gaps in NS’s train monitoring system, safety protocols, and lack of clear lines of communication as the event unfolded.

What’s Next

• The trial was initially projected to last two to three weeks.
• NS rested on April 11.
• That same day (April 11), both GATX and OxyVinyls moved for judgment as a matter of law. These largely replicate their failed summary judgment motions.

Stay tuned—we’ll be tracking as the trial unfolds.