Norfolk Southern Loses Bid to End East Palestine Crash Lawsuit

Norfolk Southern Corp. lost its bid for dismissal of a massive proposed class action seeking to hold it liable for damages arising from the February 2023 derailment of 38 rail cars in East Palestine, Ohio, spilling toxic vinyl chloride which later burned, releasing a toxic plume.

Judge Benita Pearson of the US District Court for the Northern District of Ohio on Wednesday denied the rail company’s motion to dismiss and strike the consolidated amended class action complaint said to have been filed on behalf an estimated 500,000 residents, property owners and businesses last year.

Norfolk Southern contended the plaintiffs’ state law-based negligence, nuisance and strict liability claims were preempted by the Federal Railroad Safety Act, the Hazardous Materials Transportation Act, and other federal law, Pearson said.

“According to Norfolk Southern, Plaintiffs fail to sufficiently plead a violation of any applicable federal regulations by Norfolk Southern, and instead seek to impose liability on Norfolk Southern for various state law claims that go far beyond any obligations or standard of care required by the federal regulations,” she said.

Rejecting those propositions the judge said, “because Plaintiffs’ claims merely seek to enforce duties that are established by federal regulations, they are not preempted under either the FRSA or the HMTA.”

Even if those regulations do cover aspects of Norfolk Southern’s conduct, claims based on the railway’s conduct aren’t preempted if that conduct violated those regulations, Pearson said.

The judge did dismiss a stand-alone claim for medical monitoring on behalf of Ohio residents, stating it could be imposed as an element of damages if Norfolk Southern is found liable for the underlying tort.

Pearson also granted in part, and denied in part motions to dismiss by GATX Corp., General American Marks Co., Trinity Industries Leasing Co., and OxyVinyls LP.

The case is In Re: East Palestine Train Derailment, N.D. Ohio, 4:23-cv-00242, 3/13/24.