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The owner of a Delaware chicken farm will pay $205 million to settle claims that its poultry processing plant contaminated air and the groundwater around it, including leaching chicken parts into neighboring properties.
On Monday, Superior Court of the State of Delaware Judge Craig A. Karsnitz signed a final order approving the settlement of claims against Mountaire Farms’ plant in Millsboro and its owner.
The original claims filed in 2018 alleged the plant and Mountaire Corp.’s other subsidiaries generate more than 2 million gallons of sludge and wastewater each day, Law 360 reported. That wastewater — which contains blood, fecal matter, feathers, animal fat, and other contaminants — then allegedly enters the plaintiffs’ properties.
The lawsuit also said the company was spraying wastewater with elevated levels of nitrogen, and that air and water pollution caused health problems, and brought property prices down.
The agreement resolves all lawsuits against the plant in federal and state court and creates a $65 million fund for residents affected by Mountaire Corp.’s alleged wastewater disposal problems.
It also commits the company to spending $140 million on a new wastewater treatment plant to ensure its wastewater discharges don’t violate federal guidelines for nitrogen levels. Attorneys for the residents told WBOC they believe it’s the largest nitrate groundwater contamination settlement in history.
“We think, certainly, this sends a message to really all corporations who are polluting the environment that if they don’t comply, they’ll be held accountable,” Schochor, Federico, and Statin, P.A. lawyer Phillip Federico said. More than 3,000 nearby residents have already registered claims, Law360 reported.
In his final approval of the settlement, Judge Karsnitz wrote that it is always difficult to determine if “enough is enough” in any settlement.
However, he said Montaire had vigorously defended the case, and noted that at the time of settlement the company’s lawyers had been preparing an appeal. Had they been successful on their liability defenses, the residents would have received nothing.
“The settlement amount is substantial. Liability is significantly at issue, and success at trial is subject to doubt. The length and expense of trial and potential appeals are enormous,” Karsnitz said.
“No class members are objecting to the settlement. Finally, the monetary relief will be administered through a comprehensive claims process to share the fruits of the efforts with all class members after evaluating each class members’ damages.”
In a statement to WBOC, Mountaire said it did not believe it caused any damage to any of the residents, however chose to settle the case “in order to achieve a final resolution and to allow construction of a new wastewater treatment plant to proceed.”
Mountaire Farms is part of Mountaire Corp., an agricultural food production and processing company employing nearly 10,000 people at facilities in five states. According to the company’s website, it is the sixth-largest U.S. chicken company.
The amount awarded to individual Class Members in the Mountaire Farms settlement will depend upon how many people submit a valid claim, as well as the severity of the Class Member’s injuries and damages.
Each person with a valid and timely claim will receive a portion of the $65 million after attorneys’ fees, notice costs, and other expenses are paid. To see if you may be eligible to benefit from the Mountaire Farms settlement, click here.
What do you think of this settlement? Let us know in the comments!
The Cuppels are represented by Chase T. Brockstedt and Stephen A. Spence of Baird Mandalas Brockstedt LLC, and Philip C. Federico and Brent Ceryes of Schochor Federico and Staton PA.
The Montaire Pollution Class Action Lawsuits are Cuppels et al. v. Mountaire Corp. et al., Case No. S18C-06-009, before the Supreme Court of the State of Delaware, and State of Delaware Department of Natural Resources and Environmental Control v. Mountaire Farms of Delaware Inc., Case No. 1:18-cv-00838, in the U.S. District Court for the District of Delaware.
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