$2.9M Freedom settlement aimed at those with ‘real economic loss’

CHARLESTON, W.Va. — Workers and business owners who suffered in the Jan. 9 chemical spill will benefit from the $2.9 million bankruptcy settlement approved this week in the Freedom Industries case, according to a Kanawha Valley attorney.

“This will make money available, hopefully soon, to pay some amount to people who suffered real economic loss,” Nitro attorney Harvey Peyton said. “People, not corporations, but people, small businesses.”

Bankruptcy judge Ronald Pearson signed off on the settlement between Freedom and plaintiffs’ attorneys. The money is coming from Freedom’s insurance coverage. Residents who suffered loss filed claims earlier this year for some of the funds.

“It could be waitresses or waiters who lost earnings or tips. It would be a small business, a dental office, a caterer,” Peyton said. “Those people who had direct claims resulting from injuries inflected. As opposed to other debtors who had loss from equipment or whatever.”

Freedom filed for bankruptcy eight days after the spill of MCHM from its tank farm along the Elk River. The spill contaminated the water at the West Virginia American Water plant and caused a do-not-use water order.

Peyton said Pearson has made sure the available money isn’t swallowed up in other ways.

“He has been extremely wary of excess administrative expense, excess lawyer’s fees, excess expert witness fees and he has criticized and chastised lawyers for the debtors at every turn,” Peyton said.

The settlement is also awaiting the approval of a U.S. District judge. A panel will be appointed to determine ways that some of the money will be spent to benefit the public interest.





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