Residents Wait for Settlement, While Lawyers Get Paid First
2025-11-11
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Last year's Norfolk Southern train derailment in East Palestine has left those affected waiting for compensation from the 0 million settlement. While residents await direct payments that could take years, it seems the lawyers brokering the deal have already been paid. This raises questions about the fairness and transparency of the settlement process.
Lawyers' Payment and the Appeal
According to case documents filed in Youngstown's U.S. District Court, the distribution of the attorneys' 0 million chunk of the settlement is not impacted by appeals. T. Michael Morgan filed an injunction motion on Oct. 28, but Judge Pearson ruled against it on Nov. 18. Morgan's motion argued that class counsel intended to make payments to attorneys despite the appeal staying direct payments to clients. However, Pearson referred to Section XIV of the settlement agreement, which stated that legal fees were to be paid within 14 days of final approval and allocated by class co-lead counsel. Morgan had endorsed this plan at the time.Furthermore, Pearson pushed back on Morgan's claim that he was unaware of the attorneys' payment before residents. The "quick pay" provision in the settlement agreement allowed class counsel to receive payment immediately after final settlement approval. Morgan received an email on Oct. 7, less than two weeks after final approval, stating that allocations had been finalized and requesting wire instructions.
Personal Injury Component and Payment Delays
The majority of class members who opted into the personal-injury component are still waiting. Determination letters from Kroll Settlement Administration have been trickling out, providing the exact amount of the personal injury award and instructions for direct-deposit. However, the process has been painfully slow. It's been over two months since approval was granted, and few residents have received letters, let alone the payments.
Appeal and Its Implications
Over 55,000 claims were made against the settlement, and five class members appealed the final approval ruling, halting direct payments. In Ohio, an appeal can take several months to a year, and potentially longer if appealed to the state Supreme Court. Pearson is considering a motion to require appellants to post an appeal bond of 0,000 as a financial guarantee. If the bond is not paid, the appeal could be dismissed. If payments are made and the appeal is won, the appellants would be responsible for recovering the money.As for the attorney fees already paid out, if the settlement is modified or reversed on appeal, Section XI of the settlement agreement requires class counsel to return the fees along with interest within 14 days.The status of the appeal and the payment process have been the subject of online speculation, with conflicting information and more questions than answers. The public relations firm handling media relations for plaintiff counsel has not responded to inquiries about the legal fees and personal payment process.