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Ohio businessman sues railroad for $500 million in train derailment

Crews continue the cleanup along the railroad tracks in the village of East Palestine, Ohio on Wednesday, February 22, 2023. A Norfolk Southern train derailed in the village spilling hazardous chemicals on February 3rd. Photo by Aaron Josefczyk/UPI
Crews continue the cleanup along the railroad tracks in the village of East Palestine, Ohio on Wednesday, February 22, 2023. A Norfolk Southern train derailed in the village spilling hazardous chemicals on February 3rd. Photo by Aaron Josefczyk/UPI | License Photo

Nov. 16 (UPI) -- An Ohio businessman is suing Norfolk Southern railroad for $500 million for damage and lost business he claims he suffered after a massive train derailment in February, spilling more than 1 million pounds of vinyl chloride, a toxic flammable gas near the town of East Palestine.

"Literally devastated my life and my multiple businesses in East Palestine," said Edward Wang, the owner of CeramFab located right next to where the derailment happened.

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Wang bought the property in 2019 and spent about $4 million to upgrade the facilities and began producing ceramic fiber insulation products for use in steel mills and foundries.

Wang had installed a new piece of finishing equipment just a few months before the derailment, which was never used and it, along with lots of other equipment, remains idle in the ceramic facility.

Wang is blaming Norfolk Southern for the loss of his business and millions of dollars in unfilled contracts and lost revenue.

"You are the creator of the disaster. We are the victims of this disaster. Do we have to suffer from all this?" Wang asked of Norfolk Southern.

Wang claims his crews were removing water and contaminated soil from his shipping bay, which was flooded several times, and now his workers and customers are skittish about returning to the site.

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"Right now," Wang said, "we have no future."

While declining to comment on Wang's lawsuit, Norfolk Southern spokesperson Thomas Crosson said the railroad is "actively supporting businesses in their recovery efforts."

Crosson said the rail carrier has reached settlements with 11 businesses and has offered nearly $2 million in compensation.

Wang claims he tried to reach a settlement with Norfolk Southern and stay out of court, but "they were just not willing to engage in any meaningful way and because of that, we're going to have to go through this process," Wang's attorney Jon Conlin said. Wang claims the spill forced the closure of his main business for months and what he says is a permanent shutdown of two other businesses.

An initial investigation by the National Transportation Safety Board said the accident was likely the result of an overheated wheel bearing which caused the train to derail, spilling the vinyl chloride, some of which ran into a ditch and leached into a nearby stream.

According to the Environmental Protection Agency, the train was also carrying pollutants and other toxic chemicals when it derailed near East Palestine, about a quarter mile west of the Ohio - Pennsylvania state line.

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The EPA provides rolling updates on its website .

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