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Editor’s note: This article has been updated with additional information from Flexsteel.
A furniture manufacturer has agreed to pay $9.8 million to fund cleanup efforts at an Elkhart federal Superfund site.
The consent decree entered Monday between Iowa-based Flexsteel Industries Inc., the United States Environmental Protection Agency and the Indiana Department of Environmental Management also requires Flexsteel to reimburse the EPA for a portion of its past costs incurred at the Lane Street Ground Water Contamination Superfund Site, according to the office of the U.S. Attorney for the Northern District of Indiana.
A complaint filed simultaneously with the consent decree says Flexsteel — which describes itself as “one of the largest manufacturers, importers, and exporters of furnishings in North America” — owns 65 acres at the intersection of Lane Street and County Road 106 in northeastern Elkhart County. That land is the former site of a Dygert Seating facility, where vehicle seats were assembled using adhesive glues, aerosol cleaning products and degreasing products.
Some of those products contained trichloroethylene, or TCE, tetrachloroethene and other chemicals. According to the complaint, short-term exposure to high levels of those chemicals can cause headaches, lung irritation, dizziness, loss of consciousness and death. Long-term exposure to low levels can cause cancer.
In 2007, IDEM confirmed elevated levels of TCE were present in the wells of several homes on Lane Street. The EPA responded by installing water filtration systems for affected homes and connecting 26 homes that had private wells to the municipal water supply.
Then in 2016, the EPA determined the proper remedy for the site is to treat a contaminated groundwater plume by breaking down the contamination into harmless compounds. The $9.8 million that Flexsteel will pay will fund those efforts.
“Indiana proudly works with our federal partners and industries across our state to make sure the health of Hoosiers and our environment is protected,” IDEM Commissioner Brian Rockensuess said in a statement released by the U.S. Attorney’s Office. “This settlement is great news for the people of Elkhart and will help ensure the cleanup of long-standing water contamination.”
The case was filed pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, better known as CERCLA, and Indiana Code §§ 13-25-4-8, -9 and -10.
The consent decree is subject to a 30-day comment period and final court approval. According to the Department of Justice, the comment period has not yet been scheduled.
Once the U.S. District Court for the Northern District of Indiana authorizes the $9.8 million payment, Flexsteel will have 45 days to pay. Failure to pay on time will result in Flexsteel incurring a $3,500-per-day penalty, plus interest.
The case — United States of America and State of Indiana v. Flexsteel Industries, Inc., 3:22-cv-893 —has been assigned to Indiana Northern District Chief Judge Jon DeGuilio and referred to Magistrate Judge Michael Gotsch Sr.
In an Oct. 31 email to Indiana Lawyer, Flexsteel CFO Alejandro Huerta pointed to the company’s 8-K filing with the Securities and Exchange Commission, which states, “Although Flexsteel strongly disputes liability in this matter, the settlement fully resolves the Company’s alleged liability for the Lane Street contamination, including the EPA’s past costs and future remediation costs.”
“Flexsteel’s independent environmental investigation determined that the source of the contamination was located at another property where Flexsteel did not operate, supporting Flexsteel’s position that it did not cause or contribute to the contamination,” the filing continues. “Despite that fact, Flexsteel determined that entering into this agreement, and foreclosing on the liabilities associated with the EPA’s claims, is in the best interest of the Company.”
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