FLINT, MI -- A federal judge heard early defenses and criticism of a proposed settlement of Flint water crisis lawsuits Monday, Dec. 21, and told Flint residents she will take as long as necessary to hear any comments they have before giving final approval to the deal -- even if their testimony takes several days to complete.
“I will issue a written decision in January (on whether to give preliminary approval to the proposed settlement),” U.S. District Court Judge Judith Levy said during Monday’s hearing. “If approved, there will be an opportunity for anyone who could be a claimant under the agreement to attend a future hearing and be heard. If that hearing takes two or three or more days, that is how long it will take...
“On the one hand, I will be keeping the pedal to the metal to move this litigation forward... but on the other hand, nothing is more important to me than hearing all sides of an issue and having the time to consider them carefully.”
Genesee Circuit Judge Joseph J. Farah and Michigan Court of Claims Chief Judge Christopher M. Murray, each of whom have cases affected by the proposed $641-million settlement, were also at Monday’s hearing along with Levy.
The hearing came just hours before the Flint City Council was scheduled to meet Monday to consider joining the settlement, which was first proposed by the state of Michigan and attorneys for thousands of Flint residents who claim they were harmed by city water during the Flint water crisis.
Council members haven’t been able to agree for weeks about whether to accept $20 million from a city insurance policy to pay for its portion of the settlement -- $20 million.
Some council members believe the overall settlement, which includes $600 million from the state, $20 million from McLaren Regional Medical Center and $1.25 million from Rowe Professional Services, doesn’t provide enough money to residents and doesn’t propose to distribute the available money fairly.
City attorneys and Mayor Sheldon Neeley have advocated for the settlement, saying it could protect the city from future legal fees and potential judgements because Flint would be forced to defend the actions of city employees and former emergency managers against residents’ claims that they were at least partially responsible for causing and prolonging the water crisis.
If the council rejects the settlement, the city will remain as a defendant in more than 100 pending cases brought by residents in state and federal court.
The U.S. Environmental Protection Agency, city water consultants, Hurley Medical Center and bond companies that arranged financing for the Karegnondi Water Authority have also declined to settle the cases.
One attorney who represents 4,000 residents in federal court warned in a Dec. 19 letter that he will accept nothing less than $500 million from the city in a future settlement if Flint decides to to opt-out of the settlement.
Another attorney involved in the settlement talks told Levy Monday that attorneys will file a motion with the court if the settlement is accepted preliminarily, proposing a cap of 33.3 percent of the final settlement for attorney fees.
Levy heard arguments only briefly Monday on the motion to accept the settlement agreement, but two attorneys raised initial objections to the fairness of the deal.
Philadelphia attorney Mark Cuker, who represents approximately 1,300 Flint residents in federal water cases, called the “allocation scheme” proposed in the settlement “fundamentally flawed.”
Cuker said the settlement leaves Flint residents who have not had a bone scan procedure to determine their exposure to lead at a disadvantage, adding the tests are not readily available to Flint residents.
Attorney Todd Weglarz, who represents 26 Legionnaires’ disease victims, said the settlement doesn’t provide enough for those who contracted the disease during the water crisis. Cases of Legionnaires’ cases spiked sharply while the city used the Flint River as its water source in parts of 2014 and 2015.
Individuals who died after contracting Legionnaires’ make up one of 30 settlement categories in the proposed agreement.
“Your clients don’t have to accept this settlement...,” Levy told Weglarz. “They also will have the opportunity to file an objection.”
Read more:
Flint Council votes to hire own attorney, delays decision to settle water crisis cases against city
Two Flint City Council members at odds for years now teaming up to find water attorney
Flint City Council can’t agree on water crisis settlement, vote pushed to Thursday
Opponents vow to fight Flint water settlement as city decision approaches
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