Norfolk Southern Sued by Insurers Over Ohio Train Derailment

Norfolk Southern is facing a subrogation lawsuit from several insurance companies over the February 2023 train derailment in East Palestine, Ohio, which resulted in a toxic chemical spill. The lawsuit, filed in the US District Court for the Northern District of Ohio, includes claims of negligence, strict liability, and trespass.

The insurers—Erie Insurance Co, Erie Insurance Exchange, Homesite Insurance Co of the Midwest, and American Family Insurance Co—seek to recover damages paid for property damage, loss of use, and income losses. They assert that Norfolk Southern violated state laws against statutory, public, and private nuisances and failed to maintain their trains properly.

The derailment, involving approximately 38 train cars, led to an explosion and release of hazardous chemicals. The insurers claim that an overheated wheel bearing, detected by a "hotbox detector," caused the derailment. They further allege that Norfolk Southern did not adequately maintain or inspect the train and cars.

This lawsuit adds to several others filed against Norfolk Southern, which had insurance coverage for significant losses above $75 million. The outcome of these legal battles could impact future regulations and standards for railway operations and safety.