Tag: U.S. Bankruptcy Court

Longview Power Seeks OK to Settle Pollution Suit

Longview Power has asked a bankruptcy judge to allow it to settle a lawsuit alleging pollution violations by two subsidiaries.

The federal lawsuit alleges that pollution discharges by Coresco and Mepco exceeded their permits. It also says other pollutants were discharged without a required permit.

The companies deny the allegations.

The Dominion Post reports that Longview filed a motion in U.S. Bankruptcy Court in Delaware last week seeking permission to settle the case. Under the proposed agreement, Coresco and Mepco would improve flows at two discharge sites. They also would construct equipment to collect and divert flows to a water treatment plant.

The Sierra Club and the West Virginia Highlands Conservancy filed the lawsuit in West Virginia in 2012. Longview filed for Chapter 11 bankruptcy in 2013.

Deadline Approaches for Claims in W.Va. Chemical Spill

    

Time is running out for residents and businesses affected by a January chemical spill in Charleston to file claims in federal bankruptcy court.

Claims against Freedom Industries, the company responsible for the spill, must be filed by Friday. Forms can be obtained and completed on the court’s website.

According to the U.S. Bankruptcy Court in Charleston, roughly 850 claims were on the register as of Wednesday morning. The total amount listed for those claims is more than $21 million.

Business losses must be accompanied by documentation, but residents don’t need documentation for personal damage.

The Jan. 9 spill at Freedom’s plant along the Elk River caused a tap-water ban for 300,000 people for days.

Dozens of individuals and businesses have sued Freedom, but those legal cases were frozen when the company filed for bankruptcy protection eight days after the spill. 

Legal observers do not believe there will be much money left in Freedom for claims after the bankruptcy proceedings.

Judge Calls for W.Va. Chemical Spill Agreement

  A bankruptcy judge is giving Freedom Industries, its insurer and stakeholders 10 days to strike an agreement on its $2.9 million insurance policy.

The company that contaminated West Virginia’s largest water supply returned to bankruptcy court Tuesday in Charleston.

Freedom and 24 residents and businesses that sued after the spill proposed a $2.9 million settlement Friday using insurance. A board would pick projects benefiting the public to fund.

Former Freedom executives objected. Their lawyers said the insurance should cover their related legal costs.

They said more extensive coverage should apply, which would cost insurer AIG Specialty more.

The January spill caused a tap-water ban for 300,000 people for days.

U.S. Bankruptcy Judge Ronald Pearson gave lawyers another week to file briefs if a deal isn’t reached.

Freedom Industries in Bankruptcy Court Tuesday

  The company at the center of a chemical spill into West Virginia’s largest water supply is back in bankruptcy court Tuesday.

Freedom Industries has a Tuesday morning hearing scheduled in U.S. Bankruptcy Court in Charleston. The hearing will involve a $2.9 million settlement with Freedom’s insurer.

Lawyers for Freedom Industries and businesses and people who sued Freedom reached a tentative settlement, according to documents filed Friday in Charleston federal court.

The settlement would use $2.9 million in insurance money for public projects, potentially including long-term health monitoring. A board would determine exactly how to spend the money.

The agreement would settle 24 lawsuits against Freedom. Many businesses sued to recoup profits they lost while shuttered for days. A January tap-water ban affected 300,000 people.

Judge Denies Some Attorney Reimbursements in Freedom Bankruptcy Case

A judge won’t let the West Virginia company at the center of a January chemical spill reimburse its legal team for sending multiple lawyers to hearings or for travel costs.

Judge Ronald Pearson denied several Freedom Industries requests to pay law firms for work during bankruptcy proceedings. Pearson objected to firms overstaffing meetings and hearings, charging full rates for travel and asking for excessive reimbursement.
 
Pearson approved about $722,000 in payments to Freedom’s various lawyers and consultants Monday. The court denied thousands of dollars in fees and requested more information on hundreds of thousands more.

The January spill contaminated drinking water for 300,000 people for days.
 
Dozens of lawsuits against Freedom are frozen while the company works out bankruptcy issues. Businesses temporarily shuttered without clean water filed many of them.

 

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