A federal judge has approved a plan to begin the process of paying tens of thousands of claims from a more than $600 million legal settlement tied to the Flint water crisis.
A decade ago, the city of Flint’s drinking water became contaminated with lead after the ill-fated decision by a state appointed emergency manager to switch the city’s tap water source, as a way of saving money. Water from the Flint River was improperly treated, allowing lead and other contaminants to spread through the city’s water system.
Nearly 26,000 claims have been deemed eligible for a share of the settlement created by the state of Michigan, the city of Flint, and others.
On Friday, U.S. District Court Judge Judith Levy issued an order implementing the payment process and directing letters to be sent to people who qualify for a share of the settlement so they can set up their payment.
A letter shall be sent to each claimant or their counsel, if they are represented, containing a unique identification code that will allow them to access the payment portal, find their payment information, and select their form of payment. Letters that are mailed and returned to the sender shall be resent one additional time. Claimants who are unable to access an online system shall be provided with an alternative method of selecting their payment options.
Special Master Deborah Greenspan, who has been overseeing the claims process, has said the size of the payment will vary, from $1,000 for property claims to roughly $100,000 for those claimants who were young children at the time of the Flint water crisis and have demonstrated exposure to lead and related health issues.
Levy’s order provides additional direction for remaining outstanding issues, including 1,100 claimants who are Medicare-entitled and whose claims are subject to Medicare liens.
There is also the issue of attorneys’ fees for the small army of lawyers who have represented many Flint residents and businesses affected by the water crisis.
The special master must still complete the final calculation process to determine the exact payouts to the 30 different categories of claims under the settlement.
Nearly 80% of the settlement is set aside to claimants who were minors a decade ago during the water crisis.
