Defect notices signal next phase in derailment settlement
EAST PALESTINE — With the property damage payments expected to begin in early 2026 now that the appeals of the final approval of the $600 million settlement between class members and Norfolk Southern has been dismissed, residents are receiving correspondence from the new settlement administrator that signal personal injury payments may soon resume.
Residents are beginning to receive from Epiq — the company that replaced Kroll after a federal judge removed Kroll from the case – letters in the mail notifying class members of defects in their claims. The latest batch of letters set a deadline of Dec. 4 to cure the “defect” or deficiencies in their personal injury claim paperwork — such as proof of residence, proof of employment or proof of location that would establish a person being present within 10 miles of the derailment between Feb. 3, 2023 and April 26, 2024.
The personal injury (also known as Voluntary Exposure Supplement) was open to anyone who lived or worked within 10 miles of the derailment. The direct payments – to cover property damage – were open to anyone who lived or operated business within 10 miles of the derailment.
The East Palestine Train Derailment Plan of Distribution outlines the allocation of the $600 million settlement fund to compensate class members affected by derailment. The fund is divided into three programs: Direct Payment ($265 million), Voluntary Exposure Supplement ($120 million), and Actual Net Business Loss ($25 million),with additional allocations for holdbacks ($10 million), attorney fees ($162 million) and legal expenses ($18 million).
The Direct Payment program compensates households based on a point system, starting with a base of 100 points equivalent to $70,000. Points are adjusted using multipliers based on factors such as proximity to the derailment site, household composition, displacement duration, property ownership and damage. Reductions and offsets apply for prior payments or reimbursements.
The Voluntary Exposure Supplement compensates individuals for personal injury or chemical exposure, with a base of 100 points equivalent to $25,000. Payments are adjusted using multipliers for factors such as location, timing of presence, age, symptoms, medical treatment, and formal diagnosis. Reductions apply for prior medical reimbursements.
The Actual Net Business Loss program compensates businesses dollar-for-dollar for documented losses caused by the derailment, subject to reductions for prior reimbursements. According to court documents “if claims exceed the fund, payments will be reduced proportionally.”
Questions can be directed to the settlement administrator in writing at East Palestine Train Derailment Settlement, P.O. Box 6820, Portland, OR 97228-6820, by calling 1-833-425-3400, or by email at info@EastPalestineTrainSettlement.com.

