Sep 22, 2024

Judge Approves Historic $626.25 Mil. Settlement for Residents Impacted by Flint Water Crisis

by Nadia El-Yaouti | Nov 14, 2021
The city of Flint Water Plant water tower in Flint, Michigan. Photo Source: The city of Flint Water Plant water tower in Flint, Michigan. (https://arstechnica.com/)

U.S. District Judge Judith Levy has given final approval to a $626.25 million settlement that will be paid out to the residents of Flint, Michigan, who were impacted by the water crisis that caused lead in piping to seep into the city’s water supply.

In an effort to save money, in April 2014 the city began sourcing its water from the highly corrosive Flint River as opposed to piping in treated water from Detroit. Flint had piped in the treated water from Detroit for over five decades before they made the switch to the Flint River. The move was set to be temporary as a new water pipeline from Lake Huron was being built.

This cost-cutting move resulted in lead-contaminated water after lead in the city’s aged pipe system began to seep out into the water. With the contaminated water being used throughout the city, residents suffered an array of health issues including skin rashes, loss of hair, elevated levels of lead in their blood, and even elevated levels of cancer-causing chemicals like total trihalomethanes caused by overchlorination of the contaminated water. The city also saw the third-largest outbreak of​​Legionnaires’ disease (a form of pneumonia) which claimed the lives of 12 and sickened nearly 100 others. The health issues of residents continued even after the city stopped using water from the Flint River in 2015.

Levy gave her ruling on Wednesday where she described the settlement as a "remarkable achievement" that was a "fair and sensible resolution of the claims." Levy also expressed her approval of the settlement and explained there would have been a great deal of uncertainty if the case went to trial. "The complexity and volume of this litigation present significant risks and potentially great expense to all parties if the case were to be tried," Levy details. “...Any award of damages after trial would be vastly diminished in value by the duration and expense of trial."

While officials welcomed the settlement, some flint residents disapproved, citing a low payout and a miscarriage of justice. A Flint resident, pastor, and longtime activist Arthur Woodson explains that the attorneys and Judge “are not looking out for the residents” with this approved settlement. “[Governor] Gretchen Whitmer, Mayor Neeley, the lawyers, all of them need to go to hell,” Woodson explains. “The lawyers were just looking out for themselves.”

Woodson highlights the low payout that residents are going to get and that once a resident finds out how much they are going to get, they will be unable to opt out. “What settlement have you ever seen where you don’t know how much you’re going to get and then if you find out …you can’t opt-out?” Woodson explains. “They know we’re a poor community, and we don’t have pro bono lawyers that will come in and help us out.”

Another Flint resident, Pastor Kevin Thompson of St. Mark Baptist Church of Flint, echoed Woodson’s disapproval. Thompson saw many of his parishioners suffer because of the water poisoning and he explains he doesn’t think residents are getting a fair share. “I think they should come up with a better amount. It’s a class-action suit. So once people get the money, there won’t be any money. The lawyers take a third of the money. And there’s nothing left.”

Thompson highlights that children who were impacted will suffer brain-related injuries that will be with them for the rest of their lives. And while the settlement allocates nearly 80% of the net funds going to children, Thompson calls on additional measures for kids who were impacted like free medical assistance and free tuition or scholarships

Democratic Senate Minority Leader Jim Ananich also supported the deal, calling the settlement “a measure of justice.” Ananich adds, “It is also an important declaration that the state will be held accountable when its actions — or inactions — cause irreparable harm to the people who live here."

Attorney General Dana Nessel acknowledges that the settlement offers "only partial relief to what remains unimaginable hardship," but she adds that the move is the right step forward.

Under the settlement, the state has been ordered to pay $600 million, the city of Flint will pay $20 million, McLaren Health Care Corp will pay $5 million and consulting firm Rowe Professional Services Co will pay $5 million.

The settlement details that 64% of net funds will go to children 6 and younger, 10% will go to children 7 to 11, 5% will go to children 12 to 17 while 15% has been allocated for adults 18 and older. Property owners and renters will also see a 3% payout while businesses that had property and economic losses will get a 0.05% payout.

Roughly $35 million will be set aside for a trust fund titled the “Forgotten Children.” This trust fund is intended to help support kids who were impacted by the Flint water crisis but were unable to receive compensation. Eligible children like those who are in the foster care system will be allowed to apply for the funds when they are 19 years of age.

In March of 2021, lawyers requested roughly $202 million in lawyers fees. A separate order regarding the attorneys' fees has yet to be issued by Levy.

Levy notes in the 178-page order that only about 0.002% of the 50,000 claimants have objected to the settlement. There are still pending lawsuits from Flint residents who did not join in on the settlement. These plaintiffs are continuing to argue their claims in the court system.

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.