By Andi Anderson
In February 2023, a train derailment occurred in East Palestine, Ohio, involving Norfolk Southern, resulting in damages to properties, including homes, and hazardous material fires. State Farm Insurance has now filed a subrogation lawsuit against Norfolk Southern in Columbiana County, Ohio Common Pleas Court, seeking over $85,000 in damages for payouts made to two homeowners affected by the incident.
Justin Daubenmire, an East Palestine resident, claimed $39,374 for damage to personal property and $32,025 for damage to real property. State Farm paid Daubenmire $71,199 after deducting $2,799. Barbara Georgescu, another resident, claimed $13,051 for personal property damage, which State Farm fully compensated.
State Farm alleges that the damages to the insured properties were a result of negligence on the part of Norfolk Southern. The train was transporting hazardous materials, including vinyl chloride, which ignited during the derailment, causing fires and emitting toxic fumes, smoke, and soot.
Norfolk Southern has stated that the total cost of the derailment near the Ohio-Pennsylvania border is expected to exceed $1.1 billion. The company has received $101 million in insurance payments thus far. Additionally, an Ohio business owner previously sued Norfolk Southern for $500 million, asserting that his East Ohio businesses have remained closed since the derailment. Norfolk Southern disclosed that it had reached confidential settlements with 11 businesses and offered $1.8 million to 55 others at the time of the incident.
Photo credit: istock-imaginegolf
Categories: Ohio, Business