(The Associated Press circulated the following article by Jacob Jordan on May 26.)
COLUMBIA, S.C. — Attorneys for railroad owner Norfolk Southern and Graniteville residents who were evacuated after a deadly train wreck and chemical spill asked a federal judge Thursday to approve a joint class-action settlement just four months after the incident.
But at least one attorney, who said he represents some 430 Graniteville residents, objected to the proposed payouts, calling them “ridiculously low.”
Norfolk Southern and plaintiffs’ attorneys expect U.S. District Judge Margaret Seymour to approve the preliminary settlement despite the objection. They expect a fairness hearing later this summer where formal objections can be made.
“I think the severity of what these people went through is being minimized,” said Louisiana-based attorney Peter Borstell, who has set up offices in Graniteville. “I think it’s ridiculously low.”
Borstell was referring to the $2,000 the railroad has agreed to pay to each household that was evacuated within the one-mile radius of the crash site.
Nine people died and 250 were injured when a tanker car carrying chlorine ruptured after a train barreled on to a side track and smashed into several parked railcars on Jan. 6. Federal investigators say the crew of the parked train failed to flip a switch.
Norfolk Southern also has agreed to fully compensate residents for personal property damage and lost wages. Attorney Daniel White said the railroad company has already worked to settle nearly 2,500 claims, but many of those may be reassessed under the proposed settlement to see if residents are owed more money.
“Obviously, we believe it’s fair. It is reasonable,” said Norfolk Southern attorney Daniel White. “The $2,000 is above all of the loss that can be demonstrated.”
The railroad expects to spend $35 million for cleanup costs, legal claims and all other expenses from the wreck, Norfolk Southern spokesman Robin Chapman said.
This class-action agreement attempts to settle most of the claims from the 5,400 people who were evacuated from the area. The settlement does not include wrongful death payments to the families of the nine killed or money for medical expenses to those severely injured after the pre-dawn crash. The railroad thinks less than 200 people sought medical treatment within 72 hours of the crash.
And those that don’t want to be a part of the class-action lawsuit may opt out, plaintiffs’ attorney Joe Rice said. Rice and attorneys for the railroad said they would likely meet with Borstell later to talk about his concerns.
The settlement breaks the classes into three groups and some residents could be a part of all three subgroups. The first group can make claims for property damage related directly to the chlorine, such as an automobile that wouldn’t work after the incident or wiring that has been damaged in a building.
The second subclass allows residents and businesses to make claims for damages related to the evacuation, such as lost wages, food and pets.
Plaintiffs attorney Joe Rice said one couple who lived near the derailment site left their pit bull behind. “After he finished eating the couch” he broke out through a window looking for food. The dog eventually returned to the home by breaking another window, surviving the entire incident, Rice said, noting the couple should be reimbursed for their couch and windows.
Residents “didn’t know they were going to be gone for eight to 13 days,” Rice said.
The third class pays those residents in the evacuated area $200 per day for minor personal injury for each day they were evacuated up to 13 days, as long as they didn’t receive medical treatment within three days of the crash.
Rice showed a map to the judge that was divided into sections based on how many days those residents were evacuated from their homes. Many of those people may have had sleepless nights” and anxiety from the incident, but no serious injuries. “Everybody that was evacuated may have some emotional concerns,” Rice said.
The settlement ultimately means that a family of five living within the one-mile evacuation zone would receive at least $15,000 if it qualified for the last two classes. Their settlement would be even more with property damages and lost wages.
One exception is a few neighborhoods evacuated outside the one-mile zone. Those households would receive $1,000 and $600 per resident for minor injuries.
The settlement won’t cover visitors to the area. “We just couldn’t figure out how we would monitor that,” Rice said.
Voluntary fire chief Phil Napier, who responded within minutes of hearing about the incident said the settlement sounds fair.
“Of course, some will not agree,” said Napier, who also owns a hardware store in town. “I think really overall a lot of the people in the community are going to be surprised to get anything” other than their lost time at work and property damage.
“I think the majority of the people are going to be surprised and very receptive.”