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Pollution Litigation Review - April 2001
Pollution Litigation Review - April 2001
Charlie Kingdollar, Stamford
USA/ Canada
On April 18, 2001, a citizen's action group, the Environmental Justice Action Group, filed a lawsuit against Oregon Steel alleging that the firm violated Clean Air Act permits on hundreds of days since 1995. The suit seeks an injunction barring the company from exceeding permitted levels of air pollutants and millions of dollars in civil penalties, The Clean Air Act provides for civil penalties up to $27,500 per day for each violation of emissions standards or limitations. envirobiz.com 4/19/01
On April 15, 2001, a corroded pipeline at an Alaskan oil field leaked about 92,400 gallons of produced water, a mixture of salt water and oil, onto the tundra and into a small pond. The operator of the Kuparuk field, Phillips Petroleum is remediating the spill which affected an area equal to about 35,000 square feet. Reuters 4/17/01
On April 16, 2001, it was reported that a new study by researchers at the University of Iowa found that women exposed to nitrates in drinking water are at an increased risk of contracting bladder cancer. The study involved nearly 22,000 Iowa women and concluded that women with 2.46 milligrams (mg) per liter of nitrates in their drinking water were 2.83 times more likely to develop bladder cancer compared to those with minimal levels of nitrates in their water ((less than 0.36 mg). The study will be published in the May issue of "Epidemiology." Lycos Environmental News Service 4/16/01
On April 16, 2001, the Alaska Railroad agreed to reimburse the State of Alaska $450,000 for responding to five spills occurring between October 1999 and July 2000. In addition the railrod will pay an $87,000 civil fine for three of the spills. The remediation costs recovered by the State includes some of the ongoing costs of a 120,000 gallon fet fuel spill into the Susitna River. Civil penalties arrising from this spill may be filed at a later date after remediation and full damage assessments are completed. Anchorage Daily News 4/17/01
On April 17, 2001, the Government of Ontario amended Ontario's Environmental Protection Act increasing the maximum fine for a corporation's first major offense from $CA1 million to per day to $CA6 million per day. Subsequent convictions of polluting offenses increased from $CA2 million per day to $CA10 million per day. The maximum fine for an individual's first major offense was increased from $CA100,000 per day to $CA4 million per day and subsequent polluting offenses from $CA200,000 per day to $CA6,000,000 per day. Administrative penalties also increased from $CA5,000 per day to $CA10,000 per day. In addition, the Ontario government has created an environmental SWAT team to crack down on deliberate and/or repeat polluters, and put into place a toll free 24 hour pollution hotline people can call to report acts of pollution. Dow Jones 4/17/01
On April 16, 2001, it was reported that employees of two asbestos abatement firms were arrested for knowingly exposing students and faculty at the Fort Morgan High School in Colorado to asbestos. Employees from the National Service Cleaning Corp. and Steve Heron and Associates performed an improperly removed asbestos from the school and allowed students and faculty to return knowing that the building was contaminated with asbestos. Lycos Environmental News service 4/16/01
On April 17, 2001. it was reported that dozens of sites along a 40 mile stretch of both sides of the Hudson River, from Albany, NY to Glen Falls, NY are contaminated with PCBs. According to state records, G.E. dumped six times more PCBs on land in the Hudson River Valley than it dumped into the river. The contamination is allegedly caused by historical operations of General Electric's capacitor plants in the area. At least 15 of these sites have already been designated a "significant threat to the public health or environment" and many other sites have PCBs in excess of levels deemed hazardous. In 1999, G.E. Agreed to pay between $316 million and $716 million to remediate PCB contamination in Pittsfield Massachusetts and along waterways in Massachusetts and Connecticut. The federal EPA is attempting to force the company to spend an additional $460 million to cleanup PCBs in the Hudson River. G.E. has reportedly already spent $160 million on investigations and shoreline cleanup of PCBs along the Hudson and $60 million in defense costs fighting the EPA's proposed Hudson River cleanup plan. Remediation of these additional New York sites could become yet another huge liability facing G.E. The article states that remediation of PCB contamination "could ultimately require them to spend billions cleaning up toxic sites throughout the Hudson River basin." The New York Times & Dow Jones 4/17/01
On April 17, 2001, it was reported that the U.S. Supreme Court held that Indian tribes can enact clean air standards for reservation lands that are more stringent than those of the state. This can have a huge impact on development, energy policies and industrial emissions on land as far as 60 miles outside of reservation lands. Associated Press 4/17/01
On April 16, 2001, it was reported that potentially responsible parties (PRPs) have agreed to pay $CA30 million ($us19.2 million) towards the cleanup of the former Britannia Mine in British Columbia, Canada. Total cleanup costs for the contaminated soil, sediments and acid rock drainage may exceed $CA75 million ($48 million). The current property owner, a real estate developer, Copper Beach, has agreed to pay $CA5 million ($US3.2 million) towards the cleanup and pay $CA1.7 million annually ($US1.1 million) in perpetuity to operate the pump and treat system necessary to treat the acid mine drainage. Other PRPs splitting the $CA30 million in cleanup costs include Aluminum Company of America, Atlantic Richfield Co., Canzinco Ltd., Ivaco/Arrowhead Metals Ltd., and three of Alcoa's subsidiaries - Intalco Aluminum, Alumax, and Howmet Holdings. Office.com & Lycos Environmental News Service4/16/01
On April 4, 2001, it was reported that over 400 families living near an industrial facility in Rochester, New York have filed a class action alleging that exposure to PCBs and heavy metals contamination caused the residents' cancers and reproductive injuries including at least 11 birth defects and more than a dozen incidents of multiple miscarriages. The plaintiffs are seeking $500 million. Defendants in the case are General Electric, Black & Decker and Minnesota Mining and Manufacturing (3M), each of which owned the site at some time during the sites 50 years of operations. Mealey's Emerging Toxic Torts 4/4/01
On April 13, 2001, it was reported that 907 South Carolina residents have filed a toxic tort class action against IMC Global alleging that emissions from one of its fertilizer plants resulted in an increased risk of serious illness. The plant was operational from 1910 to 1986. The suit alleges that the residents were exposed on a daily basis to hazardous emissions containing substances such as lead, arsenic, mercury and dioxins. The class seeks medical monitoring costs, attorneys' fees and punitive damages. Knight Ridder Tribune News Business 4/13/01
On April 13, 2001, it was reported that a New Jersey testing lab was fined $1 million for falsifying test results for reformulated gasoline. The firm changed test results in order to make it appear that the gasoline complied with EPA standards for cleaning burning fuel. This resulted in an estimated 200 million to 300 million gallons of gasoline distributed throughout New York, New Jersey and Connecticut from 1995 and 1997 that was falsely certified as meeting reformulated gasoline standards. Lycos Environmental News Service 4/13/01
On April 4, 2001, it was reported that the City of Chicago, Illinois is preparing to file a lawsuit against lead industry defendants seeking money to remediate lead in housing. The filing of the suit has been held up because some of the potential defendants have reportedly expressed interest in a settlement. Mealey's Litigation Report Lead 4/4/01
On April 4, 2001, it was reported that a Massachusetts judge affirmed a class action suit filed against the manufacturers and distributors of plastic mini-blinds containing lead. Defendants Ames Department Stores and Jencraft Corp. settled with the first plaintiff in the class for $100,300. The plaintiff alleged that dust from the 12 sets of mini-blinds caused the elevated blood-lead levels her 2 1/2 year old daughter (Padilla v. Ames Dept. Stores). The settlement also prohibits the settling defendants from manufacturing, importing, distributing or selling mini-blinds containing lead. The class could potentially include thousands of Massachusetts children exposed to lead dust emanating from plastic mini-blinds. Mealey's Litigation Report Lead 4/4/01
On April 13, 2001, it was reported that two separate research teams using the most sophisticated computer modeling and millions of accumulated temperature measurements taken from the world's oceans have concluded that the buildup of heat in the seas over the past five decades was almost certainly due to greenhouse gas emissions from human activities. One research team was lead by the Scripps Institution of Oceanography. The other by the National Oceanic and Atmospheric Administration. One reviewing scientist, a professor of atmospheric science at the University of Victoria in British Columbia, Canada stated that the results are "consistent with land-based detection schemes, but doesn't suffer from the problems of being clouded by the noise that critics always focus on." The New York Times 4/13/01
On April 12, 2001, it was reported that after dozens of children suffered asthma and allergic reactions mold was discovered in the carpets of classrooms in Wallingford, Connecticut public schools. The school board is having the carpets in 143 classrooms removed. WTNH News 4/12/01
On April 12, 2001, it was reported that while 40% of inner-city children living in Milwaukee, Wisconsin have lead poisoning, the statewide lead poisoning level for children under age six is 11.1% more than two and a half times the national average. Milwaukee has about 44,000 rental units which were built before 1950 and are in need of lead paint abatement which is expected to cost over $100 million. Statewide, over 73% of Wisconsin's housing stock contains lead-based paint. BestWire 4/12/01
On April 11, 2001, it was reported that arsenic contamination was discovered throughout the soil along a 4,000 foot long, 40 feet wide stretch of Union Pacific's tracks at their Sacramento, California rail yard. Arsenic levels measured nearly 55 times higher than limits considered safe. Previous testing at the rail yard found a 700 fool long strip of soil contaminated with lead and zinc as well as tons of coal dust, a known carcinogen. Sacramento Bee 4/11/01
On April 11, 2001, a California court ordered a pipe manufacturer and asbestos manufacturer Johns Manville to pay an asbestos plaintiff $20 million in damages. The plaintiff, who has mesothelioma, worked for a plastic pipe manufacturer for nearly 40 years. The company shared its plant with an asbestos cement pipe manufacturer, J-M A/C Pipe Corp. The jury found J-M A/c Pipe liable for half of the $20 million award and held Johns Manville liable for the remainder. law.com 4/11/01
On April 12, 2001, it was reported that two New York recycling firms settled state allegations that they violated hazardous waste laws by agreeing to pay $3.75 million in fines. The two firms, Telesector Resources Group, a subsidiary of Verizon, and Phillip Metals Inc allegedly dumped lead contaminated water onto the ground behind the facility and poured contaminated water down drains leading to county sanitary sewer system. These violations allegedly occurred from 1988 to 1998. The New York Times 4/12/01
On April 12, 2001, it was reported that according to the Toxic Release Inventory, during 1999, the amount of toxic substances released into the air, water and soil by U.S. industrial facilities totaled 7.8 billion pounds. This was a 5% increase over 1998 figures. The metal mining industry accounted for half the toxic releases and showed the largest increase in toxic releases (up 416 million pounds). Electric utilities were the second largest polluting sector. The state that released the most toxins into the environment in 1999 was Texas. Reuters & Lycos Environmental News Service 4/21/01
On April 9, 2001, Koch Petroleum Group will pay a $10 million criminal fine for covering up benzene emissions emanating from its Corpus Christi refinery. The company plead guilty to releasing 91 metric tons of benzene, a known carcinogen, into its liquid waste streams during 1995. This was about 15 times the amount the refinery was permitted to release. The company must also pay an additional $10 million on environmental projects. The New York Times 4/9/01
On April 2, 2001, the Fourth Circuit Court of Appeals, interpreting Maryland law, held that a Homeowners' insurer must defend an insured sued in a lead poisoning case even though it was determined that the injured parties did not live at the insured's premises during the policy period. The court held that, under Maryland law, the duty to defend is triggered "no matter how attenuated, frivolous, or illogical that allegation may be." Mealeys.com 4/10/01
On April 13, 2001, it was reported that on March 20th, Florida's Senate Banking and Insurance Committee approved a bill that would allow insurers to only apply pollution exclusions to incidents that "involve long term environmental degradation or an environment-wide exposure." While I'm not sure exactly what's meant by an "environment-wide exposure," it seems evident that the committee is unhappy with the breadth of pollution exclusions. This comes after Florida courts have upheld pollution exclusions under a wide variety of circumstances. Florida's House committee has a similar bill before it (HP1445). Morrison Mahoney & Miller, LLP Insurance Law Newsletter 4/13/01
On April 9, 2001, it was reported mold contamination at a Hurst, Texas fire station cost $2,4 million. The Texas Department of Health reports getting 200 telephone calls per day about toxic mold. According to this article, "buildings in many parts of the Metroplex are being torn apart because of health concerns. The list of places closed because of mold appears to be growing by the day." Knight Ridder Tribune News Business 4/9/01
On April 9, 2001, the settlement of two New York lead poisoning suits were reported. An upstate New York case involving 2 siblings, now 11 and 12 years old, who were exposed to lead paint in their apartment in 1991, settled for $925,000 (Epps v. Lane and Baggetta). Two private landlords and their insurers contributed $675,000 and the County of Albany paid $250,000. The county was named as a defendant for allegedly failing to supervise lead abatement measures performed in an apartment and certifying the dwelling as lead free when the hazard still existed. The second settlement involving a 9 year old child exposed to lead paint from birth to age 3 resulted in a $575,000 structured settlement guaranteeing the plaintiff $1,032,711 in total future payments (Bautista v. Chaya). The New York Law Journal 4/9/01
On April 9, 2001, Milwaukee joined the growing number of municipalities which have filed suit against the manufacturers of lead-based paint. Defendants in the suit are Mautz Paint and NL Industries of Houston. According to the City's lead attorney, damages could reach $100 million plus punitive damages. Four out of ten inner-city Milwaukee children are reportedly lead poisoned. Associated Press 4/10/01
On April 6, 2001, it was reported that asbestos maker W.R. Grace failed in its attempt to keep an asbestos property damage class action in federal court. The suit, where 20,000 property owners living close to the company's vermiculite plant in Minneapolis are seeking more than $1 billion in property damages. The federal court remanded the case to the Minnesota state court system. Mealey's Litigation Report Asbestos 4/6/01
On April 9, 2001, it was reported that the University of Rhode Island settled a federal action by agreeing to pay $800,000 for violating, the Clean Water Act, the Clean Air Act and hazardous waste laws. The settlement includes a $250,000 fine and $550,000 which will be spent on environmental projects n the community. In November, the EPA proposed fining another New England University, Brown University, $500,000 for environmental violations. The Providence Journal 4/9/01
On April 6, 2001 residents of Luzerne County, Pennsylvania filed a class action suit against Sunoco and Sun Pipe Line Co., alleging that a pipeline rupture on January 19, 2000, resulted in bodily injuries, property damages and diminution of property value. The rupture of the pressurized pipeline allegedly resulted in a geyser of gasoline releasing benzene into the air for several hours. The gasoline was allegedly carried down wind forcing the evacuation of some residents and contaminating soil and groundwater. Thousands of people were allegedly exposed. Four plaintiffs attorney firms have teamed up to litigate the suit. Plaintiffs are seeking damages plus an order mandating Sunoco to set up a medical monitoring fund for exposed residents. Dow Jones 4/6/01
On April 6, 2001, a Florida jury found tobacco industry defendants were not liable for a former flight attendant's lung disease. The case is the first of 3,000 second-hand tobacco smoke exposure suits flight attendants have filed in Florida since the 1997 settlement by tobacco industry defendants which required tobacco industry defendants to set up a $300 million medical monitoring fund for flight attendants exposed to second smoke in airline cabins. The plaintiff worked as a flight attendant from 1972 to 1996. The Wall Street Journal 4/6/01
In April 2001, it was reported that the developers and contractors which built a 96 unit town home project settled a construction defects/mold suit filed by a California homeowners' association for $1.32 million. The suit alleged that various construction defects resulted in toxic mold contamination. The developer of the units filed suit against numerous contractors which worked on the units. Amounts paid by the various defendants break down as follows: Roberts Group (the developer) $450,000; RME Coatings $190,000; High Country Plumbing $160,000; DLC Plastering $120,000; Ruffco Construction $85,000; CB Tile $82,000; DeOliviera Concrete $48,000; B. King Painting $36,000; Air Care $30,000; Kimstock $30,000; Hayden Roofing $25,000; Western Fireplace $22.404; Sunair Aluminum $20,000; Golden State Drywall $9,000; Insul-Crete $8,500; M&M Weatherstrip $5,000; T. McGee Electric $4,320; Valley Street Metal $4,000. Mealey's Litigation Report Mold 4/01
In April 2001, it was reported that an Oregon condo association has filed suit against developers, sellers and contractors seeking $2 million to repair mold contamination and water leaks (Pearl Lofts Condominium Owners Assoc. v. Prendergast & Assoc. & Walsh, Construction et al.). Prendergast & Associates and Urban Homes Inc. were the developers and sellers of the units, Walsh Construction was the contractor. Also named as defendants are: subcontractors Pioneer Waterproofing (sealants and caulking), B&B Masonry and Western Partitions (stucco and synthetic stucco siding); and window manufacturer Weather Shield Manufacturing and window distributor Western Pacific Building Materials. The condos were built in 1994. Mealey's Litigation Report Mold 4/01
In April 2001, it was reported that four class action suits have been filed against Behr Process Corp. alleging that their paint and wood sealant products failed to protect against mold and mildew. The suits have been filed residents in Alabama (Banks et al. v. Behr Process Corp.), Alaska (Price et al. v. Behr Process Corp.), New York (Stoner et al. v. Behr Process Corp.) and Oregon (Mitchell et al. v. Behr Process Corp.). Mealey's Litigation Report Mold 4/01
In April 2001, it was reported that California State University has filed a construction defects/mold suit against the contractor which worked on the 15 story residence apartment building. Defendants are:Perini Building Co., North Bay Drywall, Architectural Glass and Aluminum, Pacific Sealants, Aqua Proof, Chemrex, and Sto Corp, d/b/a/ Sto Industries. Other mold suits filed recently include a California homeowner (Erin Brockovich v. Morrison Associates...yes, THE Erin Brockovich), A Pennsylvania homeowner (Atkins v. Dryvit Systems Inc.), and an Arizona college student (Carr v. State of Arizona & University of Arizona).
On April 3, 2001, an Illinois high school student has filed a suit in Kane County Circuit Court seeking $50,000 in compensatory damages for the student and medical screening costs for all students at St. Charles East High School after mold contamination was discovered on some walls in the school. The medical screening will determine if any of the students have suffered adverse health affects caused by exposure to the mold. The attorney representing the student is said to be seeking class action status as other students will likely be added as plaintiffs. The suit also seeks to keep the school closed until independent experts are allowed to perform an environmental assessment of the school. Tests have already found stachybotrys, aspergillus and penicillium. Indoor air concerns first surfaced in 1997 in the school. The school has 2,400 students. The suit names Community School District 303 and "John Doe" architect, engineer and general contractors as defendants. Chicago Sun-Times & Chicago Tribune 4/4/01
On April 4, 2001, it was reported that 39 New York residents have filed a suit against the operators of three landfills located in the suburbs of Buffalo, New York seeking nearly $400 million in damages (Hosmer v. Buffalo Crushed Stone). The suit alleges bodily injuries and property diminution caused by heavy metals and hydrogen sulfide gas leaching from the landfills into soil, water and air. The operators of a limestone quarry and the companies which allegedly created the materials dumped in the landfills are also named as defendants in the suit. The plaintiffs are seeking $100,000 each for diminution of property value, $500,000 each in compensatory damages and $10 million each in punitive damages plus the creation of a medical monitoring trust fund. Mealeys.com 4/4/01
On April 3, 2001, it was reported that New York's largest health insurer, Empire Blue Cross Blue Shield, is suing tobacco industry defendants seeking to recoup $800 million in costs for treating individuals with smoking-related illnesses. The trial actually began on March 26, 2001. Defendants include: Philip Morris, R.J. Reynolds, Brown & Williamson and Liggett. Best Wire 4/3/01
On April 3, 2001, it was reported that a toxic tort class action suit has been filed against pesticide manufacturer Cheminova A/s and Cheminova Inc. by Florida residents alleging that malathion spraying to kill the medfly in 1997, caused a variety of adverse health affects. The suit alleges that the company failed to warn municipalities that when stored in temperatures exceeding 77 degrees Fahrenheit a highly toxic compound, isomalthion, can form. Plaintiffs allege that the pesticide was stored at airport tarmacs in the summer heat. Knight Ridder Tribune News Business 4/3/01
On April 3, 2001, it was reported that the U.S. Department of Transportation Research and Special Programs Administration (RSPA) has proposed lowering the reporting threshold for hazardous liquid pipeline spills from 2,100 gallons to 5 gallons. The rule would govern 2 million miles of natural gas and hazardous liquid pipelines. Bridge News 4/4/01
On April 2, 2001, it was reported that asbestos manufacturer W.R. Grace filed for bankruptcy protection due to burgeoning asbestos personal injury claims. In 2000, the company experienced an 81% increase in the number of asbestos personal injury claims filed against it compared to 1999, with even higher increases in the number of claims filed for the first three months of 2001. Grace's CEO has stated that "trends in case and settlement demands ... show no signs of returning to historic levels." To date, the company has received over 325,000 personal injury claims and has paid $1.9 billion to resolve some portion of those claims. Dow Jones 4/2/01
On April 2, 2001 a Rhode Island Superior Court has ruled that the state can proceed with its suit against the manufacturers of lead paint seeking to recover the costs of removing lead-based paint from all public and private homes in the state. The court dismissed claims seeking recoveries for cost incurred by the state for special education programs for children with elevated lead levels and all claims for damages for damages to individuals arising out of allegations of industry negligence or for manufacturing a defective product. Should the state prevail, the abatement of all Rhode Island homes, where 80% of the homes were built before lead paint was banned in 1978, could cost hundreds of millions of dollars. Defendants in this case include: Sherwin Williams, SCM Chemicals Inc., and American Cyanamid Co., whose paint liabilities were assumed by Cytec Industries Inc., Atlantic Richfield Co., DuPont Co., NL Industries Inc., Glidden Co., a unit of Imperial Chemical Industries (ICI) PLC., O'Brien Corp., which was also purchased by ICI, and the Lead Industries Association Inc. The Wall Street Journal and Associated Press 4/3/01
Rest of World
On April 26, 2001, it was reported that by March 8, 2001, 4,087 claims seeking US$78 million were filed under the Internation Oil Pollution Compensation Fund as a result of the Erika tanker spill which occurred on December 13, 1999 and spilled 4.4 million gallons of oil off the French coast. Oil Spill Intelligence Report 4/26/01
On April 27, 2001, it was reported that the Hungarian government submitted a lawsuit in Budapest Municipal Court seeking $102 million against Aurul, a Australian-Romanian mining company for a massive cyanide spill which occurred in January 2000. The amount of damages sought is reportedly based upon natural resource damages and losses to the tourist industry. Dow Jones International News 4/27/01
On April 25, 2001, it was reported that a new Swedish study has concluded that women with occupational exposures to solvents risk a reduction in their ability to bear children. The new study is published in the April Issue of Occupational and Environmental Medicine. Researchers from the Department of Environmental Studies at Florida's International University are also examining the potential links between exposures to hazardous substances and women's reproductive health. Knight Ridder Tribune News 4/25/01
On April 23, 2001, it was reported that the Brazilian oil company, Petrobas, has been fined for two oil spills. The company was fined $8.9 million for the release of 316,000 gallons of oil which was released during the sinking of an oil platform on March 15th and a 6,600 gallon oil spill caused by a blowout on April 13th. Both spills occurred off Brazil's coast in the Atlantic Ocean. Associated Press 4/23/01
On April 14, 2001, a Georgian registered oil tanker sank of the coast of the United Arab Emirates resulting in a 30 mile oil slick. The tanker was carrying more than one millions gallons of oil when it sank. Emergency crews were unsuccessful in their efforts to contain the spill. The oil slick has spread to a protected island off the mainland's coast. Water desalination plants along the coast had to be shut down. Lycos Environmental News Service 4/19/01
On April 13, 2001, it was reported that a pipe ruptured on an offshore oil rig operated by Brazilian Oil company, Petrobas, spilling at least 6,500 gallons of oil into the Atlantic Ocean off the Brazilian coast. The New York Times & Lycos Environmental News Service 4/13/01
On April 4, 2001, it was reported that 58,800 gallons of oil have leaked form a Kazakhstan oil drilling site into the Caspian Sea. A corroded pipeline is stated as the cause. Operations at the drilling site were suspended in 1990 due to rising sea levels. Rising sea levels have also hindered the cleanup of this spill and remediation efforts have been suspended until the summer. Meanwhile the pipeline is reportedly still leaking. Associated Press 4/4/01 |
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