A group of insurance companies is suing Norfolk Southern to recover the money they paid out for damages from a train derailment in February 2023. This accident happened in East Palestine, Ohio, and involved the release of toxic chemicals.

The Lawsuit

The lawsuit was filed in the US District Court for the Northern District of Ohio. The insurers involved are:

• Erie Insurance Co
• Erie Insurance Exchange
• Homesite Insurance Co of the Midwest
• American Family Insurance Co

They are accusing Norfolk Southern of negligence, strict liability, and trespass. They claim that the railroad operator also violated state laws against creating public and private nuisances. The insurers are asking for a jury trial.

Damages and Claims

The insurers covered various types of damages, including damage to property, loss of use, loss of income, and other damages outlined in their insurance policies. Erie Insurance Co stated it paid at least 19 claims, while Homesite-American Family paid at least three claims. Each of these insurers reported that the total claims paid out exceed $75,000, and they expect more claims in the future.

The Accident

The accident in February 2023 involved 38 derailed train cars and damage to an additional 20 cars. Some of these cars were carrying hazardous chemicals. Video footage near Salem, Ohio, showed a wheel bearing overheating about 45 minutes before the accident, 20 miles west of the derailment site. A "hotbox detector," which checks the temperature of wheel bearings, alerted the train crew to stop and inspect a hot axle. The insurers claim that the overheating axle caused the derailment and that emergency brakes were applied as the train passed through East Palestine.

Claims of Negligence

The lawsuit alleges that Norfolk Southern failed to:

• Properly maintain, service, and inspect their trains and cars
• Prevent the use of a car with overheated roller bearings
• Maintain a vigilant lookout during the train's operation

After the derailment, the hazardous chemicals being transported ignited, resulting in an explosion and the release of fire, smoke, chemicals, contaminants, and debris onto insured properties.

Strict Liability

The insurers argue that Norfolk Southern engaged in an abnormally dangerous activity by dumping and igniting vinyl chloride in a residential community. They claim this makes Norfolk Southern strictly liable for any resulting damages.

Multiple Lawsuits

This lawsuit is just one of many that Norfolk Southern has faced due to the accident. Within 19 days of the incident, at least 10 class action lawsuits had already been filed.

Norfolk Southern's Insurance

At the time of the accident, Norfolk Southern had insurance coverage ranging from $75 million to $800 million per occurrence or policy year. The company also had insurance for damage to property it owns or controls, covering roughly 82% of potential losses above $75 million and below $275 million per occurrence or policy year.

Summary

To sum up, the lawsuit against Norfolk Southern by these insurance companies is a significant legal action aimed at recovering the substantial sums they paid out for the damages caused by the train derailment in East Palestine, Ohio. The insurers claim that Norfolk Southern's negligence and failure to maintain its equipment properly led to the accident, which resulted in extensive damage and the release of hazardous chemicals. This lawsuit is part of a larger wave of legal challenges facing the railroad operator in the wake of this serious incident.

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