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.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now