Outcome of Norfolk-Southern case important

A major development affecting one railroad company usually is assumed to apply to others as well, if not immediately then over the long term.
Therefore, all railroad companies, especially the major carriers, are no doubt monitoring closely how much success, if any, Norfolk Southern Railroad will have in trying to force two other companies to help pay for the $600 million class-action settlement to which Norfolk agreed in connection with its February 2023 derailment near the Ohio-Pennsylvania border.
Regardless of how current court proceedings conclude, railroad watchers probably already are anticipating that appeals could delay a final verdict on the claims in question for many months, if not years.
Thus, the news shelf life of the Feb. 3, 2023, incident seems destined to be long, as each point or allegation regarding the accident, relevant or otherwise, is argued and probably re-argued on various steps of the court “ladder.”
However, none of that will diminish the importance of the case and its potential impact on other companies, should they be faced with a complicated and costly incident like the one with which Norfolk is entangled.
For the benefit of anyone unfamiliar with the February 2023 derailment, the accident was caused by a bearing that overheated, caught fire and failed, resulting in 38 cars leaving the rails in what was described as the worst rail disaster since 2013.
An assortment of chemicals spilled and caught fire as a result of the derailment, and three days later officials blew open five tank cars filled with vinyl chloride because they feared those cars might explode.
Norfolk Southern is contending in current legal proceedings that railcar owner GATX and the chemical manufacturer OxyVinyls should share the cost of its settlement because, Norfolk believes, those companies are partly responsible for what happened regarding the derailment.
That belief is based on GATX’s ownership of the railcar that caused the derailment, and because OxyVinyls allegedly provided inconsistent and inaccurate information about its vinyl chloride before officials decided to release and burn it.
The burning generated what was described as “a massive black plume of smoke that spread over the town and forced evacuations.”
An article in the March 31 edition of our sister newspaper the Altoona Mirror said “both GATX and OxyVinyls say it would be ridiculous to hold them responsible for the derailment.”
“GATX said it complied with all the relevant regulations for taking care of its railcars” and that Norfolk Southern “should have spotted the problem and repaired it, sending GATX the bill for the repairs.”
Norfolk has countered that, like most railroads, it doesn’t own most of the cars it hauls and that everyone involved in shipping hazardous chemicals bears some responsibility for ensuring their safety under federal regulations.
The March 31 Mirror article reported that Norfolk lost a similar lawsuit regarding environmental cleanup after the derailment.
Whether the ultimate ruling sides with Norfolk about “everyone involved” or sides with the GATX and OxyVinyls stance, the decision will be important, going forward.
It is looking like the East Palestine derailment is going to be among issues front and center for a long time.