Transfer Ark. Farmer’s Suit To Federal Court, Helena Chemical Asks

July 26, 2006

An Arkansas farmer’s suit accusing two former owners of a chemical plant of contaminating nearby cropland and irrigation wells should be heard in federal court, not Phillips County Circuit Court, the defendants say.

The two companies named in the suit filed by farmer Harry Stephens and by Harry Stephens Farms Inc. are also named in a suit filed in the same court by state officials, but the state suit names a third defendant, and is a separate action from the Stephens suit.

The Stephens suit names Wormald Americas Inc. and Helena Chemical Co. as defendants. They are former owners of a plant that was operated in the Helena-West Helenas Industrial Park from 1970 until it was closed down in 2002 by its last owner, Cedar Chemical Co.

Filed June 9, the suit claims the plant was responsible for contaminating soil and water at Stephens farms through the production of various chemical compounds containing 1,2-dichloroethane – also known as ethylene dichloride, or EDC.

Charles Nestrud of Little Rock, an attorney for Wormald, said Helena Chemical Co. filed a request Thursday in U.S. District Court for the Eastern District of Arkansas asking that the suit be transferred there, because both defendants are from out of state. Wormald is based in Marinette, Wis., and Helena Chemical Co. is based in Shelby County, Tenn.

Wormald consented to the request for transfer, Nestrud said.

The suit by the state names Exxon Mobil Chemical Co. as a defendant, in addition to Helena Chemical and Wormald. It seeks more than $2 billion to pay for the costs of cleaning up the site.

The Stephens Farms suit seeks damages for cleanup of soil and groundwater at the farm, replacement of irrigation wells and loss of business income. It also asks for punitive damages.

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