Four insurers said in a federal lawsuit filed Tuesday that Norfolk Southern Corp.’s negligence caused the February 2023 train derailment in East Palestine, Ohio, and that they should be reimbursed for claims they paid to property owners.
The lawsuit, Erie Insurance Co. et al. v. Norfolk Southern Corp. et al., was filed in federal court in Youngstown, Ohio. The insurers assert claims for negligence, negligence per se, strict liability, public nuisance, private nuisance and trespass.
The insurers contend Norfolk Southern Corp. and Norfolk Southern Railway Co. knew 45 minutes before the train derailed that a wheel bearing on one of the 149 railcars was in the final stage of overheating and that the crew failed to respond to an alarm message to slow and stop the train to inspect the hot axle.
The train, which was headed to Pennsylvania from Illinois, was carrying 1.6 million pounds of toxic substances such as vinyl chloride, butyl acrylate, benzene residue and monobutyl ether. The derailment of 38 cars resulted in an explosion and fire that dispersed hazardous substances, debris and contaminants onto the property of the insureds’ policyholders, the lawsuit says.
Erie, Pennsylvania-based Erie Insurance Co. and its subsidiary Erie Insurance Exchange say they paid more than $75,000 in claims filed by 19 policyholders in East Palestine.
Madison, Wisconsin-based American Family Insurance Co. and its Boston-based affiliate Homesite Insurance Co. of the Midwest say they also paid more than $75,000 in claims filed three policyholders.
The insurers say their policies included subrogation clauses that allow them to recover the amounts they paid.
Representatives for the parties did not respond to requests for comment.
