Flint Settlement Agreement

In August, the state announced an interim tally of a $600 million class action by Flint residents. But many details were yet to be worked out, and the city of Flint and other defendants were not part of the agreement. “The settlement of these disputes against the state and now the other defendants who joined the transaction is the best possible outcome for Flint`s future,” Nessel said. The detailed contract for Flint`s water civil actions is being submitted today to the U.S. District Court for the Eastern District of Michigan. It includes the planned $600 million agreement by the State of Michigan, as well as an additional $20 million on behalf of the City of Flint, $20 million for McLaren Regional Medical Center and US$1.25 million by the Rowe Professional Services Company, bringing the state agreement to $641.25 million. The settlement is designed to ensure that Flint residents, who were children when the city`s drinking water was contaminated, would be eligible for most of the compensation, officials said. The state comparison contract provides for 18 per cent of net adult and property damage funds, 79.5 per cent for children, 2 per cent in specialized education in Genesee District and 0.5 per cent for commercial and economic losses. Also on Tuesday, the parties said they had handed over 60 pages with details of the transaction to U.S. District Judge Judith Levy, who will now review the agreement as part of an interim leave application. But the details were not in the court`s case Tuesday night.

The preliminary agreement provides that approximately 80 per cent of the net settlement fund will be spent on the rights of minor children when they were first exposed to the Flint River, with much of this amount being paid for the rights of children aged 6 and over and 2 per cent for special education services in the Genesee district. An additional 18% of net account funds will be spent on adult debt and property damage. About 1 per cent will be spent on claims on business losses. Details of the agreement between the parties were filed in court with U.S. District Court Judge Judith Levy for the Eastern District of Michigan. Judge Levy will review the agreement as part of an application for preliminary approval of the $641.2 million transaction. Undisclosed legal fees and fees would be deducted from the transaction amount, so there would be a lesser amount for distribution. Legal fees vary from case to case, but it is not uncommon for them to be one-third of a comparative amount. The detailed transaction agreement was submitted to Judge Judith Levy of the U.S. District Court for the Eastern District of Michigan.

Judge Levy will review the agreement as part of an application for interim leave and decide at a later date whether the transaction meets certain legal standards.