SUBJECT
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Approve and Authorize Participation in PFAS Litigation and Settlement Agreements; Legal Services Agreement
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DESCRIPTION
Per - and Polyfluoroalkyl substances (“PFAS”) are widely used, long lasting manufactured chemicals whose components break down very slowly over time. These chemicals have been utilized in a variety of industry and consumer products since the 1940s. Due to their widespread production and use, and their ability to move and persist in the environment, PFAS can be present in water, soil, air, food, and in materials found in homes and workplaces. Scientific research suggests that exposure to certain PFAS may be harmful to human health.
Various public water systems have filed actions against PFAS manufacturers and suppliers of products containing PFAS for damages they have or will suffer because of the presence of PFAS in drinking water and the need to monitor for the presence of PFAS in drinking water. These actions have been consolidated into a multi-district litigation in the United States District Court for the District of South Carolia. Two of the defendants, the 3M Company and E. I. Du Pont de Nemours and Company (and its related entities), have each entered into class settlement agreements of these claims. Although minimal levels of PFAS have been detected in the County’s potable water wells, the County is eligible to receive an allocation of the settlement funds which will be available from each defendant. To receive an allocation, the County must remain part of the class action and must file a claim as provided in each settlement agreement.
It is anticipated other PFAS defendants may enter into class settlement agreements regarding PFAS in drinking water and the County could be eligible for allocations from those settlements. Additionally, the County, as a member of an affected class, may be able to recover damages it has or will sustain because of the presence of PFAS in wastewater, stormwater, soils, or other materials, or any other damage arising from PFAS. To expeditiously join or opt-out of any such litigation or settlement agreement, and to timely file related claims for damages, the Board could authorize the County Manager or the manager’s designee to take such actions on behalf of the County.
To assist the County in these PFAS related matters, the County Attorney’s Office proposes that the County jointly engage local attorneys Neal O’Toole of The O’Toole Law Group, Lakeland, Jon Trohn of Campbell Trohn Tomayo & Aranda, P. A., Lakeland, together with the law firms of Baron & Budd, P. C., Dallas, TX and Cossich, Sumich, Parsiola & Taylor, LLC, Belle Chasse, LA, which have experience in addressing class actions, multi-district litigation, and PFAS based claims, under a single Legal Service Agreement. The attorneys will collectively be paid an amount equal to twenty-five percent of any recovery (whether by settlement, arbitration, court judgment) the County receives.
RECOMMENDATION
1. Approve the County’s continued participation in the class settlements with the 3M Company and against E. I. Du Pont de Nemours and Company (and its related entities) to resolve claims of PFAS contamination in public water systems drinking water as filed in the United States District Court for the District of South Carolina, and authorize the County Manager or the manager’s designee to complete and file such claims as necessary for the County to receive an allocation of the settlement proceeds.
2. Authorize the County Manager to approve the County joining any class action or multi-district litigation against any party alleged responsible for PFAS contamination of any potable water, wastewater, storm water, soil, or other material, or for any other damage arising from any PFAS.
3. Authorize the County Manager to approve the County’s participation in any future proposed settlement with any other defendant with respect to PFAS contamination of any potable water, wastewater, storm water, or soil, or for any other damage arising from any PFAS, and authorize the County Manager or the manager’s designee to complete and file such claims as necessary for the County to receive an allocation of the settlement proceeds.
4. Approve the proposed Legal Services Agreement.
FISCAL IMPACT
No current fiscal impact
CONTACT INFORMATION
Randy M. Mink, County Attorney
863-534-6477