Manufacturer agrees to settle PCB lawsuit

Wednesday, April 25, 2001

Anniston, Ala. --- Solutia Inc. has agreed to pay $40 million to settle a suit brought by nearly 1,600 Anniston residents who claimed that their community was poisoned with PCBs and that the firm tried to cover it up.

The chemical contamination allegedly was spread by the chemical division of the Monsanto Co., which manufactured PCBs in Anniston until 1972. Monsanto spun off that division and renamed it Solutia in 1997.

Ralph Knowles, an attorney for the Anniston residents, said Tuesday the sides agreed to a settlement in which the average payment to plaintiffs will be about $12,000. Each plaintiff, including about 500 minors, will receive at least $5,000, said Knowles, of Atlanta.

In addition to paying the residents, Solutia agreed to pay $2.5 million to relocate plaintiffs who live close to the chemical plant; $3.5 million to a charitable foundation to assist residents exposed to PCBs; and $1 million for part of the court costs.

Tom Bistline, assistant general counsel for the St. Louis-based company, said the settlement is not an admission of guilt. He said that by settling out of court, the company avoided a potentially lengthy trial, allowing it to focus on environmental and safety issues at the plant.

The two sides agreed on the settlement after 2 1/2 weeks of trial in U.S. District Court in Birmingham.

A 10 a.m. hearing on the settlement was set for today before U.S. District Judge Inge Johnson.

Attorneys for the Anniston residents had told the nine-member jury the company should be forced to pay a "substantial" amount.

Solutia didn't deny the chemical escaped from the plant to the area water supply. But, it said, there was no proof any residents were harmed.

PCBs, or polychlorinated biphenyls, were manufactured in Anniston from 1927 through 1972 for use as insulation in electrical equipment including transformers. The government banned production in the late '70s amid questions about health risks.

2001 copyright.  Associated Press