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World Insurance Report

Liability, awards and settlements

9.1, Graniteville train wreck class action

US: residents and workers injured by chlorine exposure from the 2005 Graniteville train wreck would receive a lump-sum payment ranging from $9,375 to $22,500 each under a proposed class-action settlement. The payments would be in addition to approved medical costs and lost wages paid by Norfolk Southern Railway Co. An estimated 700-800 people are expected to be covered by the settlement, which was given preliminary approval by a federal judge. The group would include residents, Avondale Mills workers and emergency responders. The total amount of the proposed lump-sum payments is unknown, though it is expected to be in the millions of dollars. The settlement would cover those who sought treatment from a licensed physician or health-care provider following the January 6, 2005, accident that killed nine, injured hundreds and forced the evacuation of about 5,400. Since the accident, Norfolk Southern has paid about $41mn in legal claims, medical bills, cleanup costs and other expenses not covered by the railroad’s insurance. The latest proposed settlement does not include wrongful-death claims. Of the nine wrongful-death cases, seven have been settled. Residents suing the railroad have until March 20 to opt out of the settlement.

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