Norfolk Southern denies liability in East Palestine business lawsuits

Norfolk Southern has filed formal responses denying legal responsibility for financial losses claimed by local businesses following the 2023 train derailment in East Palestine.
In court documents filed in U.S. District Court, the railroad company responded to lawsuits brought by McKim’s Honeyvine and a group of real estate entities owned by Daniel and Drew Huff.
McKim’s Honeyvine is a winery that also sells honey and chocolate on South Main Street.
The business owners allege that the derailment and the subsequent intentional burn of vinyl chloride caused property contamination, lost revenue, and emotional distress.
Norfolk Southern admitted that its train derailed on Feb. 3, 2023, due to a failed wheel bearing. The company also confirmed that a "critical" alarm was received by the crew just before the crash and that a controlled release of chemicals was executed with the approval of government officials.
However, the company denied allegations that it prioritized profits over safety or that its implementation of what it calls "Precision Scheduled Railroading" led to the accident. The railroad specifically denied that it failed to maintain its equipment or that it ignored mechanical "red flags" before the derailment.
Lawyers for the railroad argued that the businesses may have failed to prevent their own damage. The company also stated that the damages claimed by the owners are speculative and that the railroad cannot be held liable for actions authorized by the government.
Additionally, the company asserted that some claims may be barred if the plaintiffs did not properly exclude themselves from a separate class-action settlement approved in late 2025.
The businesses seek punitive damages, arguing the railroad acted with conscious disregard for the community. Norfolk Southern denied the claims, stating its conduct does not meet the legal requirements for such penalties.
