Norfolk Southern denies liability for the financial losses local companies say followed the 2023 East Palestine train derailment. In formal responses filed in U.S. District Court, the railroad disputes the allegations and challenges the damages sought by business owners, as reported by WFMJ.

Norfolk Southern denies liability over East Palestine claims
Ron Dixon took this picture during Monday’s controlled burn

This is reported by the railway transport news portal Railway Supply.

East Palestine business lawsuits name McKim’s Honeyvine and Huff entities

The East Palestine business lawsuits were filed by McKim’s Honeyvine and a group of real estate entities owned by Daniel and Drew Huff. McKim’s Honeyvine—a winery on South Main Street that also sells honey and chocolate—is among the plaintiffs seeking compensation.

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The owners say the derailment and the subsequent intentional burn of vinyl chloride caused property contamination, lost revenue, and emotional distress. Norfolk Southern denies those claims and argues the damages being asserted are speculative.

What Norfolk Southern says about the Feb. 3, 2023 derailment?

Norfolk Southern admitted its train derailed on Feb. 3, 2023, due to a failed wheel bearing—an issue also cited by the National Transportation Safety Board. The company also confirmed that a “critical” alarm was received by the crew shortly before the crash.

In its court filings, the railroad said a controlled release of chemicals was carried out with approval from government officials. It maintains it cannot be held liable for actions that were authorized by the government.

Precision Scheduled Railroading, safety allegations, and damages

Norfolk Southern rejected assertions that it put profits over safety or that Precision Scheduled Railroading led to the accident. The railroad also denied allegations that it failed to maintain its equipment or ignored mechanical “red flags” ahead of the derailment.

Lawyers for the railroad argued that the businesses may have failed to prevent their own damage. The plaintiffs, meanwhile, are seeking punitive damages, claiming Norfolk Southern acted with conscious disregard for the community. Norfolk Southern opposes that request, saying its conduct does not meet the legal requirements for such penalties.

Norfolk Southern also noted that some claims may be barred if the plaintiffs did not properly exclude themselves from a separate class-action settlement approved in late 2025, a point also discussed in related coverage by Railway Supply.

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