FORT SMITH (KFSM) – A federal judge has rejected the certification of a class action lawsuit against Whirlpool Corporation, wiping out a proposed settlement between the company and nearby Fort Smith neighbors who had filed complaints against Whirlpool.
Fort Smith property owners filed a class action lawsuit last year against Whirlpool because of the company’s contamination of nearby groundwater with the chemical TCE. The two sides agreed on a settlement in July and have been trying to get the court to certify it ever since.
U.S. District Court Judge P.K. Holmes rejected the settlement Wednesday because the case does not qualify as class action, according to court records. Because the case does not meet the requirements of a class action suit, no class action settlement can be approved, Holmes said in his order.
Environmental activist Erin Brockovich came to Fort Smith and spoke with nearly 300 people on March 26 about contaminated groundwater following the chemical spill at the Whirlpool plant.
The TCE leaked from the plant and spread north to the neighboring residences. TCE was used as a degreasing solvent at the plant between the late 1960s and early 1980s.
Multiple lawsuits were filed against Whirlpool seeking damages for harm caused by the leaked chemical.
Some of the lawsuits were gathered together last year and earlier this year as part of a class action lawsuit. The settlement reached in that lawsuit included the following stipulations:
- Property owners inside the area bounded by Ingersoll Ave, Brazil Ave., Jenny Lind Rd., and Ferguson St. will receive either an amount equal to the devaluation estimated by the County assessor or the devaluation as determined by an independent property appraiser.
- Class members outside this area will receive $5,000, and possibly more in the future, if TCE is detected above threshold levels in groundwater beneath their property.
- Property owners agree to allow access to their property for testing and remediation activities, record a deed restriction prohibiting new wells on their property, and release Whirlpool from property damage claims.
- Each class member will receive formal notice of the resolution, as well as an opportunity to opt out of the agreement.
- A federal Court will be required to approve the agreement.
- Whirlpool has agreed to pay court approved fees and costs incurred by the class members.
