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Toxic Spill Forces Closure

Columbia, SC: (Apr-07-08) Avondale Mills, a textile company that closed after the Norfolk Southern train wreck and toxic chemical spill in 2005, brought a lawsuit against the railroad company, stating that the business suffered losses and was forced to shut down as a result of the accident. Avondale Mills had sued Norfolk Southern for $420 million in damages. Records state that the train wreck ruptured a car carrying chlorine and released a poisonous cloud over the mill town of Graniteville. As a result of the incident, nine people died and 250 were injured. Some 5,400 people were evacuated.

Sources stated that the two sides reached a settlement agreement, in which Norfolk Southern and the mill's insurance company reached a deal, though both sides refused to reveal the details. Norfolk Southern's attorneys stated that foreign competition, not crash- related damage, caused Avondale Mills to close. [CNN MONEY: NORFOLK SOUTHERN, SC TEXTILE CO SAID IN LAWSUIT SETTLEMENT]

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Published on Apr-8-08


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