Mountaire reaches $205 million wastewater settlement

$65 million will go to compensate area residents for property damage and health effects.

By Tim Mastro
Posted 4/12/21

MILLSBORO — A combined $205 million settlement between Mountaire and a group of Millsboro residents was finalized on Monday regarding a lawsuit which alleged groundwater contamination and air …

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Mountaire reaches $205 million wastewater settlement

$65 million will go to compensate area residents for property damage and health effects.

Posted

MILLSBORO — A combined $205 million settlement between Mountaire and a group of Millsboro residents was finalized on Monday, regarding a lawsuit which alleged groundwater contamination and air pollution as a result of Mountaire’s wastewater disposal practices.

As part of the settlement, $65 million will go to compensate area residents for property damage and health effects. An additional $120 million will be spent to upgrade the Mountaire plant, improve its wastewater disposal practices, provide alternative water to area residents and remediation. The final $20 million is slotted for operation, maintenance and contingency costs.

Attorneys in the case reached the $65 million agreement in December, but it was not finalized until Delaware Superior Court Judge Craig A. Karsnitz approved it on Monday. The combined $140 million for upgrades was approved by a federal court.

The lawsuit was originally filed in June 2018 on behalf of Millsboro residents by law firms Baird Mandalas Brockstedt, LLC, of Delaware, and Schochor, Federico and Staton, P.A., of Maryland. The settlement is believed to be the largest nitrate groundwater contamination settlement in history, the firms said.

“We are here because the people of Millsboro, Delaware, refused to be silenced and fought for their community, their health and their quality of life,” said Chase Brockstedt, co-counsel for the plaintiffs. “It is an honor to have worked with my fellow Delaware citizens to make our state safer and a better home for many. This case is a perfect example of how a small group of people can affect real change. ... We are going to forever alter the trajectory of Millsboro, Delaware by forcing this plant to change its practices and to no longer pollute the environment.

Mountaire said in a press release it does not believe it caused any damage to any of the plaintiffs. It chose to settle the case in order to achieve a final resolution and to allow construction of a new wastewater treatment plant to proceed. The settlement resolves all outstanding class action claims for injuries, damages, or nuisance, Mountaire said. In 2019, Mountaire resolved all issues with a separate group of plaintiffs.

“We are moving ahead with building our new state-of-the-art wastewater treatment plant, which is advancing quickly,” Mountaire president Phillip Plylar said in a statement Monday. “We’re ready to put this chapter behind us and forge a new relationship with our neighbors moving forward.”

The Delaware Department of Natural Resources and Environmental Control issued construction and operation permits to Mountaire in January to begin construction of the new wastewater treatment plant, according to Mountaire.

The lawsuit was initiated in 2018 when Gary and Anna-Marie Cuppels found bottled water on their porch from Mountaire with a note telling them not to drink their tap water. Baird Mandalas Brockstedt, LLC, and Schochor, Federico and Staton, P.A., then undertook an extensive investigation of Mountaire’s waste management practices at its Millsboro facilities.

Their investigation found the plant suffered a “catastrophic failure” in 2017. DNREC issued a notice of violation to Mountaire after routine inspections found excess nitrate contamination in groundwater wells in 2017. From January to October 2017, DNREC found more than 110 environmental violations at the Millsboro facility.

The lawsuit said Mountaire’s wastewater disposal practices included the spraying of inadequately treated wastewater and field application of sludge containing excessively high levels of nitrogen well beyond the legal limits. Residents of the Millsboro area suffered serious health issues from nitrate exposure including cancer, miscarriages, and stomach ailments, as well as significant losses in property values, according to the lawsuit.

Both Mr. and Mrs. Cuppels later had to have their gallbladders removed and still suffer from gastrointestinal issues to this day.

“In terms of the settlement, I think it was probably the outcome possible, there’s no question about that,” Mr. Cuppels said. “But the impact on me, as well as my wife, continues on. We have continually since 2017 have had really severe gastric issues to the point where gastrologist really didn’t know what to do. They could tie it back to the water, but in terms of treatment, whatever was in our gut was in our gut and it creates havoc.”

Joyce Logan, a neighbor to Mountaire’s property, said the pollution caused her entire family health problems and said she believes it contributed to the death of her husband, nephew and dog.

“Maybe these next kids can live through a better life than what we got and we had through this,” Ms. Logan said. “That’s the most important thing in the world to me, is that it will help the future of our kids as well.”

David Neal said his granddaughter was born with ulcerative colitis, a hyperactive thyroid and a high heart rate which is attributed to the water pollution. Mr. Neal added the newborn baby had to be bathed with bottled water when she was first born to avoid the pollutants.

“Sure, we might be getting a little bit of money out of this thing,” Mr. Neal said. “But the damage has already been done,”

The lawyers said there are more than 7,000 class members for the settlement but fewer have registered. It is likely to be in the range of 3,000 to 4,000 registration and the next step is to identify how many qualify as class members.

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