CLEVELAND, Ohio— East Palestine school officials on Wednesday sued Norfolk Southern, alleging the rail company owes the school district more than $30 million over the 2023 train derailment disaster.
School officials in the lawsuit said Norfolk Southern never paid the district for its emergency response costs, the use of school facilities by emergency personnel and hasn’t fulfilled its promise to relocate sports facilities or build a community wellness center, the lawsuit said.
The wellness center alone costs $30 million, according to the district.
“Norfolk Southern has effectively broken its promise,” East Palestine Superintendent James Rook said at a news conference. “Norfolk Southern said it would not walk away from our community and would not only help our community recover but thrive. But it did walk away from our students.”
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The Feb. 3, 2023, derailment of 38 cars spilled potentially toxic chemicals into the ground. Later, officials burned off more chemicals amid fears of an explosion. The burn sent plumes of smoke into the air, a move federal officials later said was unnecessary.
The derailment sickened residents and caused widespread disruption for businesses and the village.
The lawsuit says Norfolk Southern promised to reimburse the district for costs related to a marketing program along with meals it provided to students in the aftermath of the crash and other programs, but so far has either not paid or only paid a portion of what was promised.
The rail company also never made up for lost operating expenses because of the derailment’s impact on property values and resident income, which the school relies on for its operation, the lawsuit said. It also said the district has lost about $1.5 million in revenue from a sharp decline in student enrollment.
“Norfolk Southern’s eagerness to resume its operations by unnecessarily exploding toxic chemicals to clear the tracks left the schools facing financial instability,” the district’s attorney, Ashlie Case Sletvold, said in a statement. “Norfolk Southern promised to ‘make it right’ for East Palestine; it must keep that promise to East Palestine’s students.”
The lawsuit adds to the growing list of lawsuits against Norfolk Southern over the derailment.
The company settled a lawsuit brought by the U.S. Department of Justice for $310 million, a lawsuit by the village for $22 million and a class-action lawsuit for $600 million filed by residents and business owners.
Some residents and business are still pursuing other claims against the Norfolk Southern and a lawsuit brought by the Ohio attorney general’s office is on-going.
Norfolk Southern last week lost a lawsuit against the owner of the rail cars that derailed. The company argued that GATX should help pay its $600 million settlement, but a jury ruled in favor of GATX.
A chemical manufacturer, OxyVinyls, settled with Norfolk Southern during the trial. The terms of that settlement were not disclosed.
Full Story: Cleveland.com April 30 2025
