Jury finds former owners of lead smelter liable for $358.5 million in damages | Interamerican Association for Environmental Defense (AIDA) Skip to content Skip to navigation

Jury finds former owners of lead smelter liable for $358.5 million in damages

08/03/2011

Doe Run Investment Holdings Company, Fluor Corporation and A.T. Massey Coal knew that lead pollution was harming children’s health.

St. Louis, Missouri — Last Friday, the former owners of a lead smelter in Herculaneum, Missouri, were found liable for $320 million in punitive damages for negligently exposing 16 children and other residents living in the area to harmful lead pollution.

“They obviously wanted to send a message: Don't choose profits over people,” said Mark Bronson, a lawyer for the plaintiffs, to the St. Louis Post-Dispatch.

The jury awarded $320 million in punitive damages last Friday, July 29, against the Missouri-based Doe Run Investment Holdings Company, Texas-based Fluor Corporation and Virginia-based A.T. Massey Coal, corporations that owned the smelter prior to 1994. A day earlier, a civil judge had ruled that the three companies would have to pay $38.5 million to the families as compensation for health problems and lost lifetime earnings as a result of pollution that occurred between 1986 and 1994.

It should be noted that according to court documents the current owner of the smelter, Doe Run Resources Corporation, had already reached a settlement with the plaintiffs for an undisclosed sum.  This settlement covered the impacts of harmful pollution that occurred after 1994.

DOE RUN PERU AND THE CASE OF LA OROYA

Doe Run Resources Corporation is a subsidiary of Renco Holding Company, owned by Ira Rennert. After buying Doe Run Resources, Renco purchased the La Oroya Metallurgical Complex in 1997 and established another subsidiary, Doe Run Peru (DRP), to operate it. DRP has kept the La Oroya smelter idle since 2009, and is negotiating with the government to reopen it.

AIDA and the SPDA have worked since 1997 to encourage the Peruvian government to hold DRP accountable for the pollution in La Oroya, which involves contaminants similar to those found in Herculaneum. The government demanded greater environmental controls at the metallurgical complex, which have not been fully implemented.  This year, Renco Holdings began a process of international arbitration within the framework of the Trade Promotion Agreement between Peru and the U.S., arguing among other things that Peru has treated the company unjustly in requiring environmental improvements to the Complex.

AIDA and the Asociación Pro Derechos Humanos (APRODEH) have brought a case and a request for precautionary measures on behalf of residents in La Oroya affected by the pollution before the Inter-American Commission on Human Rights.

"The amount of damages awarded by the US court indicates the severity of lead contamination, particularly in children, and reminds us once again of the magnitude of human rights violations that have taken place in Missouri and in La Oroya," said Astrid Puentes Riaño , Co-Executive Director of AIDA. "So we insist on greater protections in La Oroya to address the situation there."

Ramón Rivero, with the Sociedad Peruana de Derecho Ambiental (SPDA), praised the jury’s verdict and believes that it should be a model for similar cases in other parts of the world.

“Measures such as the verdict against Doe Run in the United States are corrective actions taken by a government that aim to justly compensate those affected for the harm they suffered. We have to ask ourselves if the measures taken by the Peruvian government to date, with regard to the harm caused by DRP in La Oroya, comprise such just compensation,” said Rivero.

“We need to take steps to protect public health that go beyond measurements and controls and that affect the wellbeing of the residents of La Oroya. We also need to evaluate the possibility of increasing the amount of compensatory damages that have been awarded,” Rivero concluded.

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