Monsanto subsidiary Solutia to pay $40 million in toxicity suit in Alabama

AP 25apr01

Sometimes it is just cheaper for a company to invest in pollution prevention and pollution control, that it is for them to pollute and try to lay the cost off onto the community. Monsanto found that out when it was charged US $40 million for polluting the soils and drinking water of Anniston, Alabama, with toxic chemicals for decades. It then tried to cover up the extent of pollution.

However, the Environmental Protection Agency, with the help of the affected citizens in the area found the pollution source and developed the information base to make it clear that it was the company that was the problem. After legal threats and lawsuits, Monsanto has agreed to pay US $40 million to settle a lawsuit brought by nearly 1,600 residents of Anniston.

The chemical contamination allegedly was spread by the Monsanto Co., which manufactured PCBs in Anniston until 1972, when the production of PCB's were banned because of their toxicity. Monsanto spun off its chemical business in 1997 into a company now called Solutia Inc.

The average payment to plaintiffs will be about $12,000. Each plaintiff, including about 500 minors, will receive at least $5,000. As part of the settlement, Solutia Inc. also agreed to pay $2.5 million to move 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.

The company said it did not admit guilt. "It demonstrates that we're committed to the community and it permits us to focus our attention on ... concerns closer to home," said Solutia lawyer Tom Bistline. The company didn't deny the chemical escaped from the plant to the water supply. But it said there was no proof any residents were harmed by their pollution. PCBs, or polychlorinated biphenyls, were manufactured in Anniston from 1927 through 1972 for use as insulation in electrical equipment.

The government banned production in the late '70s amid questions about possible health risks. PCBs-laden wastewater and storm water from the plant emptied into a drainage ditch and creek in a poor section of Anniston. From there, the water ran to Choccolocco Creek and Lake Logan Martin where many people drew their drinking water.

The company previously agreed to pay $43.7 million to property owners along creek and lake, where PCBs were found.