Collegedale approves assignment of train-derailment claim to Norfolk Southern for reimbursement

The Collegedale City Commission on Oct. 6 approved Resolution 554 authorizing the mayor to execute an assignment of the city’s claims from the Dec. 20, 2022 train derailment to Norfolk Southern in exchange for a payment described in the resolution.

City staff explained the measure transfers the city’s right to pursue reimbursement to Norfolk Southern after the city paid contractor and consultant costs. "Again, this is an assignment of claim. We are basically giving authority to Norfolk Southern to pursue reimbursement on their end when they pay us," said Chris McLean, city staff, describing the transaction.

According to the caption read at the meeting, the assignment is tied to a payment listed in the resolution caption as roughly $160,000. Staff said the city has already paid the identified contractors and expects to be reimbursed for that work; staff indicated reimbursement could arrive within about 30 days.

Commissioners asked a few procedural questions about whether the city had paid invoices and about pending litigation; staff confirmed the city had covered the contractor costs and that a pending lawsuit related to the incident remains unresolved.

After discussion the commission moved and seconded approval; roll call votes recorded Commissioners Baker and House, Vice Mayor Sadler and Mayor Lloyd voting in the affirmative and the resolution passed unanimously.

The action assigns the city’s claims to Norfolk Southern and does not itself resolve any pending litigation; city staff described the step as a mechanism to obtain reimbursement for documented city costs and to allow Norfolk Southern to pursue recoveries on the assigned claims.