Appeal filed against court-approved East Palestine derailment settlement pauses payments to area residents, businesses

(REBUTTALPR.COM) – Just hours after the Court overseeing the East Palestine train derailment litigation approved the widely supported $600 million settlement on Friday, class member Joseph Sheely – represented by David Graham Insurance Lawyers of Jacksonville, FL and Cleveland, TN – filed a Notice of Appeal to the United States Court of Appeals for the Sixth Circuit. This appeal means hundreds of millions of dollars in direct household and business loss payments cannot be paid until the appeal is resolved – which could take as long as two years. 

 

Sheely and his attorney had an opportunity to opt out of the settlement and file their own lawsuit; instead, their approach of objecting and filing an appeal will stop payments for the tens of thousands of people who are awaiting their claims to be paid. 

 

This appeal was filed even though more than 99 percent of the estimated 451,672 total household class members took part in the settlement, with hundreds of millions in claims filed and on the cusp of payment. Appeals to Circuit Courts like the Sixth Circuit typically take 6 to 12 months, and further appeals by this lone objector could extend the timeline another year. 

 

In her approval of this historic settlement on Friday, United States District Court Judge Benita Pearson described the “outstanding result" of the $600 million settlement as “fair, reasonable, and adequate and in the best interest of Settlement Class Members” based on “the significant relief provided to the Settlement Class Members; the risks of ongoing litigation, trial, and appeal; the extensive discovery completed to date; and, the positive reactions of Settlement Class Members.” The Judge also addressed objectors to the settlement, noting that she had considered them and overruled “all objections to the fairness, adequacy, or reasonableness of the Settlement.” 

 

Plaintiffs’ court-appointed Class Counsel – Seth A. Katz of Burg Simpson Eldredge Hersh & Jardine, P.C., Elizabeth Graham of Grant & Eisenhofer P.A., and Jayne Conroy of Simmons Hanly Conroy – led a team of more than 40 law firms that worked diligently on behalf of the community for more than a year, which ultimately led to this historic settlement. 

 

“We are deeply disappointed by this appeal, which will prevent the swift payment of direct household and business loss claims to this community which voted overwhelmingly in support of the settlement,” they said. “We will do everything in our power to quickly resolve this appeal and prevent any further burdens on the residents and local businesses that want to move forward and rebuild their lives. It is tragic that one person is substituting their judgment for the entire community who wants this settlement, and instead of opting out they have gone this route. But ultimately, only the objector who appealed can decide whether he should continue making arguments that have been rejected by the District Court, and now delay recovery and further burden this community which was counting on the settlement’s benefits to be delivered swiftly.”