Illinois railcar owner doesn’t have to pay damages in Ohio train derailment

GATX, the company that owned one of the railcars in a 2023 Ohio train derailment, will not have to pay a portion of railroad Norfolk Southern’s $600 million settlement with residents.

After a trial that lasted more than three weeks, a federal jury in Youngstown, Ohio, on Wednesday found GATX Corp. not liable in the settlement for damages caused by the incident in East Palestine.

“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 train derailment in February 2023 in East Palestine led to the intentional release and burning of toxic vinyl chloride from five railcars three days after the crash.

The derailment and release of the chemicals 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 said in June that a GATX-leased railcar’s defective wheel bearing caused the derailment and subsequent hazardous material release in East Palestine.

Related: Here’s what we know about the Ohio train derailment

Chicago-based GATX (NYSE: GATX) is a railcar lessor that owns fleets in North America, Europe and Asia.

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.

Atlanta-based Norfolk Southern (NYSE: NSC) is a Class I freight railroad operating in the eastern United States.

“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 to FreightWaves. “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.

A lawsuit filed in February against Norfolk Southern and other defendants includes seven wrongful death claims related to the incident.

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