Appeals Dismissed, but East Palestine Settlement Still Challenged
The judge is scheduled to meet with attorneys to review the progress of payments to class members following the recent decision by the appeals court. This marks another step in the long-awaited process of distributing funds from the $600 million East Palestine train derailment settlement.
The settlement, meant to compensate victims of the February 2023 derailment, moved closer to payout after a federal appeals court dismissed two legal challenges this week. However, another effort remains in the trial court, where a group of residents seeks to overturn the entire agreement.
Appeals Court Dismissals
On Wednesday, the Court of Appeals rejected two separate appeals brought by residents and businesses who opposed the settlement with Norfolk Southern Railway Company.
- One appeal was dismissed because the request for an extension to file was submitted one day late, leaving the court without jurisdiction.
- The second challenge, targeting the settlement itself, was thrown out after the plaintiffs failed to post the required $850,000 bond to proceed.
"These appeals had been delaying the release of funds to approximately 55,000 individuals and businesses who filed claims," the judges noted.
With the appeals now removed, the legal pathway is clearer for distributing the settlement funds, though some court challenges continue.
Summary
The $600 million East Palestine settlement moves forward after appeal dismissals, but new legal challenges from residents continue to delay full resolution.