Lead Exposure From Flint Water Plant Result In $600M Deal

Lead Exposure From Flint Water Plant Result In $600M Deal

Introduction

In August, Michigan Attorney General announced (AG) in a press release that the Flint water crisis reached an agreement and a deal of $600 million as part of a preliminary settlement with Flint residents is expected to be finalized within about 45 days. Flint city's water crisis started in April 2014 when it switched from the Detroit Water System to water from the Flint River. Soon after the change, the residents complained of cloudy and foul-smelling water and also reported developing skin lesions and rashes from the exposure to the water. The water source change was done by an unelected emergency manager appointed by the former Michigan Governor to manage the city’s financial affairs. But the change exposed the residents to heightened levels of lead, resulting in an unknown amount of children to suffer permanent developmental damage. The city's drinking water problems have not yet been resolved. According to the preliminary settlement, around 80% of the $600 million agreement is secured for the children who were minors and suffered lead exposure due to the contaminated water supply, which includes a larger share for children aged 6 and younger. Two percent of the settlement will go to special education in Genesee County. The remaining 18% will go to claims filed by adults for injuries and property damage, along with another one percent allotted to claims for business losses. To resolve the city's water crisis, the state indicates that it has spent $409 million, which includes $97 million allocated to replace the city’s lead water service lines. According to the press release, the state will have spent more than $1 billion if the settlement agreement is approved. The preliminary settlement should be approved by U.S. District Court Judge Judith Levy, Michigan 1st District Court of Appeals Judge Christopher Murray, and Genesee County Circuit Court Judge Joseph Farah. The settlement, if approved, will likely be the largest in Michigan state government history.