Attorney: South Carolina Textile Firm, Railroad Settle in Train Wreck Lawsuit

A South Carolina textile company that closed after a train wreck and toxic chemical spill in 2005 settled a lawsuit with a railroad company, ending a trial that began a month ago, an attorney for the firm said Monday.

Avondale Mills, Norfolk Southern railroad and the mill’s insurance company reached a deal over the weekend, said attorney Terry Richardson. He said the agreement did not allow him to release the details of the settlement.

Avondale Mills sued Norfolk Southern for $420 million in damages, claiming equipment at the firm’s Graniteville facilities was covered with corrosive chemicals and it would have cost more than the business was worth to clean the buildings and replace the machinery.

On Jan. 6, 2005, a Norfolk Southern train veered off the main track onto a spur, rear-ending a parked train whose crew had failed to switch the tracks back to the main rail. The wreck ruptured a car carrying chlorine and released a poisonous cloud over the mill town of Graniteville. Nine people died and 250 were injured. Some 5,400 people were evacuated.

Richardson said Norfolk Southern should be held accountable because the railroad knew members of the crew operating the Graniteville tracks the night before the crash had been working long hours in violation of company rules.