Attorney files objection to Whirlpool pollution settlement

An announced settlement in a class action lawsuit against Whirlpool Corporation related to property damages from trichloroethylene (TCE) contamination has hit a snag following an objection filed by attorneys representing residents affected by the contamination.

The agreement to settle the class action lawsuit on July 3 would have provided property owners in an area bound by a plume of TCE a dollar figure equal to what their properties were devalued by Sebastian County Assessor Becky Yandell in 2013. Property owners living outside the area would have received $5,000 and possibly more in the future if TCE was detected above regulatory levels in groundwater beneath properties.

In an objection to the agreement filed Friday in the United States District Court Western District of Arkansas in Fort Smith, attorney Sam Ledbetter of the Little Rock firm McMath Woods said the deal was "great" for Whirlpool and leaves plaintiffs as the "losers in the proposal."

"The proposed settlement is a great deal for defendant in that it eliminates its exposure to additional types of damages, including punitive damages, avoids any expense associated with litigation, including having to engage in discovery, and allows it to encumber and access private property as if it were a government actor in a condemnation action, thereby avoiding significant expense associated with cleaning up the mess it has made," Ledbetter wrote.

He added, "In other words, for little or no effort, putative class counsel stands to reap a handsome fee."

Ledbetter said the one-time payment offered by Whirlpool as a part of the settlement agreement was "based on an arbitrary and flawed valuation methodology," further alleging that the properties will "likely never (be) cleaned up."

In a statement to The City Wire, Whirlpool's Senior Manager of Global Public Relations Krstine M. Vernier called Ledbetter's filed objections to the settlement were "self-serving."

"Mr. Ledbetter's 'objections' are a self-serving attempt to prevent affected property owners in Fort Smith from having the opportunity to decide for themselves if they want to accept Whirlpool's substantial financial offer through the class resolution," she said.

She also said the court had been able to review the terms of the offer made to residents in the affected area and said residents had not yet received information on the settlement for consideration.

"Ledbetter's objections are also a poor replacement for constructive solutions, which this particular set of plaintiff's attorneys (have) been unwilling to offer over many months of negotiations," Vernier said.

Attorney Ross Noland, another McMath Woods attorney representing clients affected by the plume, said in statement to The City Wire that 29 residents filed objections to the proposed settlement between Whirlpool and property owners.

"Instead of recognizing the flaws in its settlement proposal and treating everyone fairly, Whirlpool Corporation has decided to attack the residents and their attorneys," he said. "This is typical behavior one would expect from a corporation more interested in its bottom line than doing right."

He said if Whirlpool was concerned with being a good corporate citizen, it would "pay the property owners and residents adequate compensation for having ruined their property values instead of an arbitrary and unfair amount."

Vernier said the settlement off would "be reviewed by the federal court to ensure that the Judge agrees that it is fair," adding that residents choosing to not take part in the lawsuit are allowed to opt out.

"If property owners opt out of the class, they can continue the costly, time-consuming and uncertain path of protracted litigation," she added.

She said Whirlpool believes the court will approve the settlement and "enable us to move forward with payments to the class members as swiftly as the legal process will allow."