(The following story by Mike Gellatly appeared on the Aiken Standard website on April 5.)
AIKEN, S.C. — Norfolk Southern Railways and Avondale Mills have settled a civil lawsuit that arose in the wake of the Graniteville disaster, according to sources familiar with the case.
In the $420 million federal lawsuit, which has been at trial for 30 days and in litigation for more than 19 months, Avondale is seeking repayment for losses it says it suffered after the train wreck released chlorine, damaging the plant and leading to the company’s collapse.
According to a source who spoke directly with U.S. District Court Judge Margaret B. Seymour, the two parties spent Friday negotiating to see if a settlement could be reached. By the end of the day, the parties had hammered it out and come back to Seymour to tell her they had reached an agreement.
The source asked to remain anonymous because they are not authorized to release information about the case.
The specific dollar amount and conditions of the settlement have not been disclosed as both Avondale and Norfolk Southern spokesmen refused to confirm or deny any deal had been reached.
“As far as we are concerned, this is still an ongoing legal matter, and therefore I can make no comment,” said Robin Chapman with Norfolk Southern.
In 2006, Avondale Mills Inc. settled with its insurance company, Factory Mills, for $215 million.
Avondale CEO Robert Felker Sr. testified in the trial all day Thursday, giving his opinion of what the Graniteville disaster had done to the company he headed.
The wreck ruptured a train car carrying chlorine and released a poisonous cloud over Graniteville, killing nine and injuring 250. Some 5,400 people were evacuated.
The chlorine, Avondale claims, took a tremendous toll on the machinery, raw materials and other assets directly leading to the downfall of the mill giant.
“There was no way to repair the damage of the derailment,” Felker testified. “No one had ever seen a chlorine spill like that. No one knew what to do.”
Felker’s testimony came on the heels of that of David Goode, who headed Norfolk Southern at the time of the accident.
Goode denied ever making statements that his company would completely restore the town and the mill back to full operation.
The complex trial was expected to last at least two more months. It has seen almost 1,500 documents filed so far.