Flint water lawsuit settlement now totals $641 million
Flint, Michigan residents, via their attorneys, filed a proposed settlement on November 24, 2020, for $641.2 million as a result of their suit for damages from contaminated water. The State of Michigan was the named defendant in the lawsuit. The City of Flint, McLaren Regional Medical Center, and Rowe Professional Services Company (an engineering and environmental services firm) also joined the settlement.
The damage to Flint’s citizens resulted from lead-tainted water. In 2014, the water supply was switched from the city of Detroit to the Flint River. The workers making the switch followed the advice of state environmental officials and did not use anti-corrosive additives. Because of this omission, water from the river scraped lead from aging pipes and fixtures, contaminating the city’s water supply.
An outbreak of Legionnaire’s Disease shortly thereafter killed a dozen people. The outbreak was thought to be caused by lead poisoning. Criminal charges were filed against state and local officials, along with class-action lawsuits. The water source was changed in 2015; the Flint River has not been supplying water to Flint, Michigan since then.
Flint citizens want to know how much they’ll receive from the distribution of the settlement funds and when they can expect their shares. If the settlement is approved as filed, Flint’s children will be awarded the most. Attorney Rick Berg said, “It is scientifically true that children suffer far greater loss of functionality as a result of lead poisoning than adults do. And so the worst harmed are going to be the people who receive the most compensation.”
The proposal suggests that minor children receive 79.5% of the settlement, that adults receive 15%, property damage settlements would receive 3%, business economic losses would be recompensed with .5%, and the “programmatic relief” settlement portion would amount to 2% of the proposed settlement total.
But will the plaintiffs realize those amounts? Attorney fees could be up to 1/3 of the total settlement. In this case, that’s $213.7 million. The attorneys for the plaintiffs have agreed upon how much to request, but they’re not planning to reveal that amount, or to file for their fees, until 30 days after Judge Judith Levy, the U.S. District Judge handling the case, has preliminarily approved the settlement. In a footnote to the proposed settlement, the attorneys stated that “a single, agreed-upon request for fees will streamline the process for evaluating that request.”
Where does the settlement money come from? The City of Flint will contribute $20 million, but made it clear that the money would not be taxpayer dollars. McLaren Regional Medical Center will contribute $20 million and Rowe Professional Services will contribute $1.25 million. That leaves $600 million, which the State of Michigan must provide.
Michigan intends to borrow $600 million from the Michigan Strategic Fund via a settlement entity. That entity would use the state’s commitment to making annual payments over 30 years to get the loan. Both the use of the settlement entity and the acquisition of the loan need to be approved by the state legislature.
The Fund was created in 1984 with the authority to create jobs and promote economic development in the state. In order to make a loan to the settlement entity, the legislature will have to amend the Michigan Strategic Fund Act to allow for lending. State Senate Minority Leader Jim Ananich said the bills to allow for the loan could be introduced and acted upon in December. He also said all the legislators, both Democratic and Republican, have been made aware of the plan.
How do Flint’s citizens get their money? First, the Judge has to approve the proposed settlement. The next step is for people to register within 60 days of the judge’s approval of the settlement. They can register if, during the period from April 25, 2014, through the date the Settlement Agreement is signed, they:
1. lived in or owned a residence that got water from the Flint Water Treatment Plant (FWTP);
2. owned or operated a business that got water from the FWTP;
3. drank or came into contact with water from the FWTP for 21 consecutive days of any 30-day period;
4. were exposed to water from the FWTP between April 25, 2014, through December 31, 2016, and were diagnosed with Legionnaire’s Disease.
Once people have registered, then they will need to file a claim. They will have 120 days to produce supporting documentation for their claim.
Although the end seems to be approaching, several barriers remain, not the least of which is the approval of Judge Levy. Then there’s the matter of the loan Michigan will seek to pay its portion of the settlement. The judge must also approve attorneys’ fees. Even with the legislature prepared to make amendments to the Michigan Strategic Fund Act in December, it may be months yet before the residents of Flint see any restitution for the catastrophic lead poisoning that disrupted their lives.
