(The Knoxville News Sentinel posted the following article by Scott Barker on its website on April 23.)
KNOXVILLE, Tenn. — Lawyers representing 72 Burnett Creek residents filed a class-action lawsuit Tuesday seeking up to $256 million in damages from the city, a railroad, four contractors and the owner of a sinkhole where a demolition company dumped debris from the contaminated Coster Shop industrial site.
Filed in Knox County Circuit Court, the lawsuit alleges that the defendants handled hazardous materials with negligence, violated state and federal environmental laws and devalued their property.
The city’s chief lawyer called the damages sought by the residents “obscene” and vowed to contest the allegations.
Each plaintiff is suing for $1 million in compensatory damages and $2 million in punitive damages. The lawsuit also seeks $20 million in compensatory damages and $20 million in punitive damages for others who may join in the lawsuit.
“Turning a community into a Third World country is unforgivable,” said Jay Wells, one of the plaintiffs. “It’s unfortunate in this day and time it takes such actions to get people to sit down and take a look at something.”
The complaint alleges the city and its contractors should have known the debris was contaminated and that the dumping constituted “an ultra hazardous use of property.”
Knoxville attorneys J.D. Lee and Dan Stanley contend the dumping violated six federal and state environmental laws covering the handling of toxic and hazardous substances, and the disposal of solid waste.
The complaint further asserts that the dumping and subsequent publicity surrounding the controversy has “stigmatized” Burnett Creek properties. According to the complaint, property values have dropped so low as to constitute their condemnation.
The lawsuit is by far the largest of five civil actions filed in connection with the dumping controversy. A federal grand jury is also reviewing possible criminal actions.
Under a $1 million contract with the city, Burnett Demolition & Salvage Co. dumped more than 800 truckloads of debris from the Coster Shop site at a sinkhole off Sevierville Pike and at least six other locations in late 2001 and early 2002.
Subsequent tests showed the soils in the sinkhole are laced with diesel fuel, arsenic, lead, polychlorinated biphenyls (PCBs) and other contaminants. The same compounds later showed up in area wells.
A dye trace study conducted by the Tennessee Department of Environment and Conservation to see if there is a connection between the sinkhole and the wells was inconclusive.
As defendants, the complaint names the city of Knoxville, Norfolk Southern Railway Co., Burnett Demolition & Salvage Co., S&ME Inc., The Development Corp. of Knox County, Barge Waggoner Sumner & Cannon Inc. and sinkhole owner Phil Reagan. Other defendants might be named later, Lee said.
Knoxville Law Director Michael Kelley said the city denies any liability in the matter.
“The undisputed evidence indicates that no officer or employee of the city had anything to do with the debris being put in the South Knox County location,” Kelley said.
“Furthermore,” he added, “it does not appear there is any link between the dumping of debris in the sinkhole and any contamination of anybody’s property.”
Wells, however, said city officials gave “ridiculous guidelines that forced contractors to take shortcuts.”
Wells also noted that the dye trace study detected trace amounts of dye in four area wells. State officials said the amounts were too small to constitute a confirmed hit.
Wells also said he finds it ironic that the city is citing the Knoxville Utilities Board for polluting municipal creeks while denying any responsibility for the contaminants in South Knox County.
Under pressure from state and federal regulators, the city and its Coster Shop contractors agreed to clean up the sinkhole on Reagan’s property and at a site in Heiskell, though they have denied any wrongdoing. Cleanup work is almost complete in Heiskell.
“I know they’re cleaning up the hole,” Wells said, “but I don’t want the people of this city, this county and this state to forget they were made to clean up this stuff. They didn’t do it on their own.”