Chemical discharge: Failure to follow cleanup plan: Clean Water Act violations: Decreased property values: Structured settlement

Law Reporter, May 2002

TOXIC TORTS

Chemical discharge: Failure to follow cleanup plan: Clean Water Act violations: Decreased property values: Structured settlement.

Rasky v. Guide Corp., U.S. Dist. Ct., S.D. Ind., No. IP00-- C-0980-M/F, Nov. 30,2001.

Guide Corporation, an auto parts manufacturer, consented to treat all contaminated wastewater and dispose of any accumulated wastewater sludge under an agreement with General Motors Corporation that required all metal-- plating operations at Guide to be discontinued.

Guide, with an environmental consultant, submitted a permit application detailing the treatment process that would be used to handle the contaminated water. Deviating from the original plan, Guide and the consultant then reportedly used a modified process to treat the water and discharged it into a river.

Because of the modified treatment method, the discharged water allegedly contained high levels of toxic pollutants. As a result, fish and wildlife were killed and property owners along the river suffered a decrease in the value of their land.

Rasley and other property owners, as a class, sued Guide and the environmental consultant. Plaintiffs alleged, among other claims, nuisance and negligence in using the modified treatment process that deviated from the original plan.

Plaintiffs also alleged defendants violated the Clean Water Act, 33 U.S.C. (sec)(sec) 1365 et seq., by unlawfully discharging industrial chemicals and waste into the river.

The parties structured a settlement with an overall value of $2 million, including an initial payout of $1.2 million. Guide contributed $1.6 million, and the consultant's insurer contributed the remainder. Each plaintiff will receive about $1,200 to $1,500.

Plaintiffs' Counsel

William C. Potter II,

*Larry R Jackson,

*Henry J. Price,

James A. Geiger, and

Gregory P. Cafouros, all of Indianapolis, Ind.

Documents in this case are available through the Court Document Sets section in the back of this issue, courtesy of Mr. Jackson.