Legal Radar

Simmons Announces Tempur-Pedic Agrees to Voluntarily Dismiss Patent Infringement Litigation

Simmons Bedding Company ("Simmons" or the "Company") a leading manufacturer of premium-branded bedding products, today announced that Tempur-Pedic Management, Inc. and Tempur-Pedic North America, LLC (collectively, "Tempur-Pedic") have agreed to voluntarily dismiss the patent infringement lawsuit that Tempur-Pedic filed on June 10, 2009 in the U.S. District Court for the Western District of Virginia. The suit named 17 mattress manufacturers, including Simmons and its subsidiary, The Simmons Manufacturing Co., LLC.

The Tempur-Pedic lawsuit alleged that two Simmons products infringed its U.S. Patent No. 7,507,468, titled "Laminated Visco-Elastic Support" (the "'468 Patent"). Simmons denied Tempur-Pedic's allegations of infringement and in addition, requested that the U.S. Patent and Trademark Office (the "USPTO") reexamine the validity of the '468 Patent.

Tempur-Pedic cited Simmons' request that the USPTO reexamine the validity of the '468 Patent as the impetus for its decision to dismiss the lawsuit. Pursuant to the terms of the settlement agreement, the lawsuit will be dismissed without prejudice subject to the court's entry of a stipulated order.

Stephen G. Fendrich, President and Chief Operating Officer of Simmons, said, "We're pleased that Tempur-Pedic has made the decision to end this legal action against Simmons. We maintain that the '468 Patent is not valid and its review by the USPTO through the reexamination process remains pending."

Atlanta-based Simmons Bedding Company is one of the world's largest mattress manufacturers, manufacturing and marketing a broad range of products including Beautyrest®, Beautyrest Black®, Beautyrest Studio(TM), ComforPedic by Simmons(TM), ComforPedic Loft(TM), Natural Care®, Beautyrest Beginnings(TM) and BeautySleep®. Simmons Bedding operates 19 conventional bedding manufacturing facilities and one juvenile bedding manufacturing facility across the United States, Canada and Puerto Rico. Simmons Bedding also serves as a key supplier of beds to many of the world's leading hotel groups and resort properties. Simmons Bedding is committed to developing superior mattresses and promoting a higher quality sleep for consumers around the world. For more information, visit Simmons Bedding's website at www.simmons.com.

SOURCE Simmons Bedding Company

Gun Rights Organizations File Lawsuit to Stop Seattle Ban

The Second Amendment Foundation, National Rifle Association and five local residents today filed a lawsuit challenging a new Seattle parks regulation that bans firearms, arguing that the ban violates Washington State's long-standing preemption statute. They are joined by the Citizens Committee for the Right to Keep and Bear Arms and the Washington Arms Collectors.

The lawsuit was filed in King County Superior Court and names the City of Seattle, Mayor Greg Nickels and Timothy Gallagher, superintendent of Parks and Recreation, as defendants. Plaintiffs are represented by Seattle attorney Steve Fogg with the Seattle law firm of Corr, Cronin, Michelson, Baumgardner & Preece LLC.

"This ban violates Washington's 26-year-old model preemption statute," noted SAF Executive Vice President Alan M. Gottlieb. "The ban makes it impossible, under threat of criminal trespass penalty, to lawfully carry firearms for the protection of spouses, partners and children on public property where these citizens have a right to be. We are once again delighted to be joined by the NRA in this action. Our successful collaborations in the past stopped illegal gun confiscations in New Orleans following Hurricane Katrina, and nullified an illegal gun ban in the City of San Francisco."

Individual plaintiffs in the case are:

Winnie Chan, a Department of Corrections employee who lives in Seattle and works in West Seattle. When she is not on-duty, she often carries her personal concealed handgun, particularly when she is going to be in unfamiliar locations, out late at night, or in large/crowded places. (DOC policy prohibits her from carrying her state-issued firearm when she is off-duty, and therefore she owns a personal firearm.) She is concerned that people she has encountered on the job may be disgruntled and pose a threat to her safety. She sometimes visits Lincoln Park for recreation, and she has seen a sign prohibiting firearms there.

Ray Carter, also a West Seattle resident, employed as a car salesman at MC Electric Vehicles in Seattle. He is active in the gay community; he co-chaired the Pride Parade in the mid-1990s and founded the Seattle Chapter of Pink Pistols/Cease Fear. He has testified in Olympia and at City Hall regarding gun bans. The Seattle Weekly wrote an article about Ray in June 2000 entitled "Gays and Guns." He carries his concealed pistol any place where it is legal, and he believes this is necessary because he is susceptible to hate-related crimes. Ray sometimes visits Lincoln Park and Alki Beach, and he states that he has seen signs prohibiting firearms at those locations.

Gary Goedecke, owner and proprietor of Pikeplace Marketwear, a 35-year-old business at Pike Place Market. A Bothell resident, he has been actively involved with the Pike Place Market for years. Gary is an avid gun owner and carries a concealed pistol wherever he can. Gary notes that Steinbrook Park is directly adjacent to the Market and is a very dangerous place; he fears for the safety of his wife (who also works at the Market) and his employees.

Gray Peterson of Lynnwood, who often visits Seattle parks facilities with his domestic partner. Active in the Seattle-area gay community, Peterson is licensed to carry a concealed firearm and does so where it is lawfully permitted because of concerns that he is susceptible to becoming a victim of hate-related crimes. Signs have been posted at some of his favorite parks that prohibit firearms possession.

Robert Kennar, a Department of Corrections employee and resident of Federal Way. He frequently works in Seattle and visits parks and recreation facilities. Kennar has been a crime victim and he often observes criminal activity in Seattle. He is licensed to carry a concealed handgun and always carries his personal firearm when not on duty where he is permitted to do so. He is concerned about retaliation from people he encounters in his line of work. Kennar enjoys visiting Seattle parks, but one of his favorite parks now displays a sign prohibiting firearms.

"This ban affects the rights of all Washington citizens who may visit Seattle parks property and recreation facilities, and especially thousands of Seattle gun owners, many of whom are members of both organizations," Gottlieb stated. "It essentially impairs the right of law-abiding citizens to bear arms for personal protection, which is explicitly protected by Article 1, Section 24 of the state constitution."

Washington State Attorney General Rob McKenna has issued an opinion that the ban is illegal. Under provisions of the ban, legally-armed citizens face arrest for criminal trespass if they enter park property.

"The parks ban is a going-away gift of sour grapes from ousted Mayor Greg Nickels to the citizens of Seattle," Gottlieb observed. "He is leaving a mess for his successor, and the taxpayers who rejected his third term bid, to clean up."

The Second Amendment Foundation (www.saf.org) is the nation's oldest and largest tax-exempt education, research, publishing and legal action group focusing on the Constitutional right and heritage to privately own and possess firearms. Founded in 1974, The Foundation has grown to more than 600,000 members and supporters and conducts many programs designed to better inform the public about the consequences of gun control.

SOURCE Second Amendment Foundation

New York Man Indicted for Clean Air Act Violations

A federal grand jury in the Western District of New York, has returned a superseding indictment charging David Vega and Francis Rowe with committing violations of the Clean Air Act while they were project managers for Gordon-Smith Contracting, Inc., an asbestos removal company owned by Keith Gordon-Smith, the Justice Department announced.

The indictment supersedes an earlier indictment returned by the grand jury in June 2009, against Keith Gordon-Smith, charging him with numerous violations of the Clean Air Act, submitting false statements and obstruction of justice. The superseding indictment now also charges Gordon-Smith's company with the same criminal violations. In addition, the superseding indictment charges Francis Rowe with submitting a false statement in an effort to obtain a court-appointed attorney.

The charges stem from allegations that Gordon-Smith, Gordon-Smith Contracting, Vega and Rowe directed and caused workers to illegally remove and dispose of asbestos during the demolition of the Genesee Hospital complex in Rochester, N.Y.

The Clean Air Act requires contractors who remove asbestos from public buildings to follow federally-established work practice standards to ensure the safe removal of the asbestos. The required standards include providing notice to the U.S. Environmental Protection Agency (EPA) before commencing asbestos removal, adequately wetting the asbestos during the removal and before disposal, and properly disposing of the asbestos at an EPA-approved disposal site.

The 18-count indictment alleges that at different time periods between June 2007 and April 2009, Gordon-Smith, Vega and Rowe had Gordon-Smith Contracting employees remove asbestos from the Genesee Hospital complex without ensuring that the asbestos was kept adequately wet or properly disposed. The indictment also alleges that Gordon-Smith caused his company's employees to perform illegal asbestos removal at other sites, including schools, and that Gordon-Smith took several steps to hide the illegal asbestos removal from federal agencies. These included failing to provide prior notification to EPA before the asbestos removal projects were performed at the schools and hospital, giving false statements to an inspector from the Occupational Safety and Health Administration, and providing a false notification to the EPA.

If convicted, Gordon-Smith, Vega and Rowe could each be punished by up to five years in prison as well as a criminal fine of up to $250,000 for each count. Gordon-Smith Contracting could be subject to a criminal fine of the greater of $500,000 or twice the gain obtained by the company or suffered by any victims as a result of the crimes, for each count.

SOURCE U.S. Department of Justice

Redevelopment Agencies File Lawsuit Challenging Unconstitutional $2.05 Billion State Raid of Local Redevelopment Funds

The California Redevelopment Association (CRA) announced today that it filed a lawsuit in Sacramento Superior Court to stop ABX4-26, a state budget trailer bill passed in July 2009 as part of the 2009/10 state budget. ABX4-26 authorizes a $2.05 billion raid of local redevelopment funds to use for state purposes.

The lawsuit challenges the constitutionality of ABX4-26 and seeks to prevent the State from taking redevelopment funds for non-redevelopment purposes.

This is the second lawsuit filed by CRA. In April 2008, the Sacramento Superior Court ruled in favor of CRA and invalidated 2008 budget language that would have shifted $350 million in redevelopment funds to the State. On September 28, the State dropped its appeal in the first case, making the April decision final and binding.

"We believe the second budget raid by lawmakers is just as unconstitutional as the first," said CRA Executive Director John Shirey. "Lawmakers ignored the State Constitution and attempted to write state budget legislation around it. That's simply irresponsible policy-making, and it illustrates why many have concluded state government is broken and needs fixing."

Shirey continued, "Though we fully expect to receive a favorable decision from the court a second time, local redevelopment agencies still must be prudent and set aside funding in case the court does not rule by the time the payment is due in May 2010. What that means is that many agencies will, in effect, cease to operate because they will have no funds available for new investments in their communities. Having to set aside this huge amount of funding robs California of one of its most productive job creating engines, and at a time when unemployment is high and still rising."

Joining CRA as named plaintiffs are two redevelopment agencies: the Union City Redevelopment Agency in Alameda County and the Fountain Valley Agency for Community Development in Orange County.

The lawsuit alleges ABX4-26 is unconstitutional for two main reasons:

Article XVI, Section 16 of the California Constitution, approved by voters in 1952, states that redevelopment tax increment funds can only be used for specified redevelopment activities, specifically "to finance or refinance ... the redevelopment project." Taking redevelopment funds to balance the State's budget - the unquestioned purpose of ABX4-26 - does not qualify as a constitutionally permitted use of redevelopment funds and is therefore unconstitutional.

Second, raiding $2.05 billion in redevelopment funds constitutes an unconstitutional impairment of contracts. Under Article XVI, Section 16 of the State Constitution, redevelopment agencies irrevocably pledge redevelopment (tax increment) revenues to pay back bonds and other obligations that raise the capital to fund redevelopment projects. By raiding funds that are pledged to pay back bonds and other creditors, ABX4-26 impairs the contractual pledge of revenues on which redevelopment financing is based.

In Union City, the State raid threatens to delay the 100-acre BART Station District redevelopment project. The project, a collaboration between the Union City Redevelopment Agency, other local transit agencies and the state and federal governments, includes remodeling the BART station to create a two-sided station with additional parking; nearby new housing; new offices; and retail space. This transit-oriented development has been in the works for 10 years. To date, the Union City Redevelopment Agency has invested more than $60 million in the project, including clean up of hazardous materials and construction of public infrastructure. Project delay jeopardizes state Prop. 1C housing funds needed to construct the housing. The Union City Redevelopment Agency has no unobligated funds to pay the $7.7 million required to be paid under ABX4-26.

"It's unthinkable that all our hard work could unravel because of the irresponsibility of the State Legislature and the Governor," said Mark Evanoff, Union City Redevelopment Agency Manager. "This project will bring new life, new jobs, and economic opportunity to Union City, and it is exactly the type of development needed in the Bay Area to reduce traffic and carbon emissions by centering jobs and homes near public transit. Unfortunately, it's all at risk because State lawmakers won't follow the Constitution."

The CRA lawsuit also identifies additional constitutional violations, including two illustrated by the Fountain Valley Agency for Community Development's situation, which impacts education funding and demonstrates why attempts to ignore the law are ill-advised.

In Fountain Valley, ABX4-26's requirement that money transferred to schools from redevelopment agencies be spent on pupils residing in the redevelopment project area, or in housing assisted by the redevelopment agency, will result in expenditures of approximately $3.3 million on only 64 students attending the Garden Grove School District. That's $52,518 per pupil. Average per-pupil spending in California is about $8,500.

At the same time, State assistance to the Garden Grove school district will be reduced by $3.3 million, resulting in a significant reduction in funds available to spend on the vast majority of students not residing in the redevelopment project area or in housing assisted by the redevelopment agency.

This is in direct violation of the 1970s U.S. Supreme Court decision Serrano v. Priest which prohibits spending disparities based on geography, and a violation of Proposition 98, which obligates the State to provide funding for school districts, not funding for a special, limited group of students.

"This is exactly what happens when lawmakers don't think things through," said Raymond Kromer, Fountain Valley Agency for Community Development Executive Director, and Fountain Valley City Manager. "You wind up with unintended consequences that clearly aren't in anyone's best interests, especially not the students'."

SOURCE California Redevelopment Association

MFG Chemical Agrees to Pay Civil Penalty for Toxic Explosion at Georgia Plant

MFG Chemical, Inc., has agreed to pay $270,000 in civil penalties to resolve claims resulting from a toxic release on April 12, 2004 of extremely hazardous chemicals at the company's Dalton, Ga., plant, the Justice Department announced today.

The toxic release resulted from a runaway reaction at the plant when MFG, upon its initial production run for triallyl cyanuarate, mixed allyl alcohol with other chemicals, leading to an extreme increase in temperature and causing an explosion that released toxic gases to the atmosphere.

As a result, the surrounding community within a half mile radius of the MFG plant was evacuated. Over 150 people, including several emergency responders, were treated for exposure at the local hospital. One-half mile of vegetation south of the MFG plant was also burned and much of the aquatic life was killed throughout several miles of surrounding creeks which were contaminated by the water sprayed on the toxic vapor cloud in an attempt to control the vapor release.

The complaint, filed today in U.S. District Court for the Northern District of Georgia, alleges that MFG failed to adhere to the Clean Air Act's general duty of care provision. The general duty of care requirement obligates companies handling extremely hazardous substances to take preventative measures to identify the risks involved and to reduce the risks by providing layers of protection on their equipment such as high temperature alarms, automatic feed shut off mechanisms, adequate pressure relief systems and a vapor release recovery and containment system. The complaint alleges MFG failed to identify the risk of a runaway reaction through its failure to calculate the temperature/time profile and to have appropriate layers of protection in place prior to the incident.

MFG has implemented measures to address conditions at the plant contributing to the explosion and release, including halting the use of allyl alcohol and hiring an experienced safety engineer to oversee its compliance with its Clean Air Act obligations. MFG also paid for the clean up of surrounding contaminated creeks. The $270,000 reflects the civil penalty that the United States determined MFG has the financial ability to pay.

Copies of the stipulation of settlement are available on the Department of Justice Web site at: http://www.usdoj.gov/enrd/Consent_Decrees.html.

SOURCE U.S. Department of Justice

National Women's Law Center Challenges Insurance Industry Practices That Treat Being a Woman Like a 'Pre-Existing Condition'

California's Governor Schwarzenegger Bans Practice of Charging Women Higher Insurance Rates Than Men; Congressional Hearing Scheduled.

The National Women's Law Center's (NWLC) groundbreaking report "Nowhere to Turn: How the Individual Health Insurance Market Fails Women," first released in September 2008, brought to light how the insurance industry discriminates against women. Now, this ground-breaking research has resulted in the enactment of a law in California -- signed by Governor Schwarzenegger over the weekend -- that bans the insurance industry practice of gender rating or charging women more than men for the same services.

"For too long, gender rating has caused hardship to many thousands of women, who have either had to forgo health insurance altogether or sacrifice to cover the extra premium cost," said Marcia D. Greenberger, Co-President of NWLC.

NWLC is on the front lines in the fight to obtain meaningful health care reform that works for women and continues to develop new research and initiatives that will intensify the spotlight on unfair insurance industry practices. This Thursday, Ms. Greenberger is expected to testify on Capitol Hill about disparities in how insurance companies treat women.

Data and research from the NWLC report "Nowhere to Turn" has become the cornerstone of the argument used by women Senators, activists and other organizations who are advocating for meaningful health care reform. The report also highlights:

• Women are regularly denied coverage for "pre-existing conditions" including pregnancy, a previous C-Section or past domestic abuse
• Insurance companies charge women as much as 48% more for individual health care coverage than men
• It is expensive, difficult, and in some states impossible, for women to find coverage for maternity care when purchasing their own health insurance plan
• A state-by-state overview of how insurance practices adversely impact women
  

At the same time that the Governor signed the gender rating bill, he also vetoed a bill that would have required health plans to cover maternity services.

Greenberger stated: "Although he did not require coverage for maternity services, banning gender rating is a great first step for improving health care for women. However, piece-meal measures will not be enough. Health care reform must eliminate once and for all the many challenges that women face in getting access to quality, affordable, comprehensive health care."

SOURCE The National Women's Law Center

SunPower and SunLink Settle Patent Infringement Lawsuit

SunPower Corp. (Nasdaq: SPWRA, SPWRB) and SunLink Corporation today announced the two companies have settled a patent infringement case brought by SunPower before the U.S. District Court for the Northern District of California. SunPower brought the lawsuit against SunLink in February 2008 asserting infringement of SunPower's patent rights covering its lightweight rooftop mounting products, SunPower® PowerGuard® and the SunPower® T10 Solar Roof Tile.

Under the terms of the settlement agreement, the specifics of which are confidential, SunLink has acknowledged the infringement of SunLink's MMS rooftop solar product as well as the validity and enforceability of SunPower's patent rights. For confidential consideration provided under the settlement, SunLink has received a license to SunPower's infringed patents.

"SunPower has a long history of developing industry-leading technology and we will take actions necessary to protect and enforce our intellectual property rights," said SunPower CEO Tom Werner. "We are glad to achieve a resolution to this lawsuit consistent with this objective."

"We are happy to bring this litigation to a close with an agreement that is not only beneficial to both parties, but also protects our current and future customers," said SunLink CEO Christopher Tilley. "With these licenses, we continue to add to SunLink's IP portfolio and are looking forward to introducing new, innovative photovoltaic mounting solutions to the market soon."

SunPower holds more than 120 patents for its innovative solar technology, including the world's most efficient solar cell and the recently launched SunPower® T5 Solar Roof Tile.

About SunPower

Founded in 1985, SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers the planet's most powerful solar technology broadly available today. Residential, business, government and utility customers rely on the company's experience and proven results to maximize return on investment. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia. For more information, visit www.sunpowercorp.com.

About SunLink

SunLink Inc, based in San Rafael, CA, offers the solar industry's most comprehensive, highly engineered solar module mounting solutions. The company designs and manufactures rooftop and ground mounted systems for commercial and utility-scale installations, supporting modules from nearly every photovoltaic manufacturer. SunLink has been the chosen solution on more than 60 MW of projects spanning over 400 sites across North America. For more information about SunLink's history, product lines or engineering services, visit www.sunlink.com.

SOURCE SunPower Corp.

ION Wins $21.7 Million Jury Verdict Against Greatbatch

DigiBIRD Battery Supplier Found Liable for Fraud, Unfair Trade Practices and Breach of Contract

ION Geophysical Corporation (NYSE: IO) today announced that on October 1, 2009, the jury returned a verdict in its favor in a lawsuit filed by ION against operating subsidiaries of battery manufacturer Greatbatch, Inc. (NYSE: GB), including its Electrochem division, in the 24th Judicial District Court for the Parish of Jefferson in the State of Louisiana.

ION filed the lawsuit in 2002, alleging that Greatbatch had fraudulently misappropriated ION's product designs and other trade secrets related to the batteries and battery pack used in ION's DigiBIRD® marine towed streamer vertical control device and used ION's information to manufacture and market competing batteries and battery packs. The jury found that Greatbatch committed fraud, violated the Louisiana Unfair Trade Practices Act and breached a trust and nondisclosure agreement between Greatbatch and ION, and awarded ION $21,733,411 in damages. In addition to the jury award, ION will be entitled to recover its attorneys' fees and costs related to the case, along with prejudgment interest accruing from the date of filing of the lawsuit.

SOURCE ION Geophysical Corporation

SEC Closes Investigation of PharmaNet Development Group and Recommends No Action

PharmaNet Development Group, Inc., a leading provider of clinical development services to innovative pharmaceutical, biotechnology, generic drug and medical device companies, today announced that the United States Securities and Exchange Commission (SEC) has notified the Company that it has completed a two and half year investigation of the Company related to revenue recognition, earnings, company operations and related party transactions and does not intend to recommend any enforcement action by the Commission. The investigation, which is now closed, was originally initiated as an informal investigation in 2006 and became formal in March 2007.

"We are very pleased that the SEC has concluded its investigation of the Company and is recommending that no action be taken by the Commission," commented Jeffrey P. McMullen, president and CEO, PharmaNet Development Group, Inc. "This very favorable outcome now allows us to put this matter behind us."

About PharmaNet Development Group, Inc.

PharmaNet Development Group, Inc., a global drug development services company, provides a comprehensive range of services to the pharmaceutical, biotechnology, generic drug and medical device industries. The Company offers early and late stage consulting, Phase I clinical studies and bioanalytical analyses, and Phase II, III and IV clinical development programs. With approximately 2,300 employees and 40 facilities throughout the world, PharmaNet is a recognized leader in outsourced clinical development. For more information, please visit our website at www.pharmanet.com.

Southern Union Company Is Penalized $18 Million for Illegally Storing Mercury at a Rhode Island Site

A federal judge today assessed the Southern Union Company $18 million for illegally storing mercury at a company-owned site in Pawtucket. The sentence imposed in federal court includes a $6 million criminal fine and $12 million in payments to community initiatives including the Rhode Island Foundation, the Rhode Island Department of Environmental Management (DEM) Emergency Response Fund and Hasbro's Children's Hospital.

John C. Cruden, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division, U.S. Attorney Peter F. Neronha and Michael E. Hubbard, Special Agent in Charge of the Boston Area Office of the Environmental Protection Agency, Criminal Investigation Division (EPA-CID), jointly announced the sentence, which U.S. District Court Judge William E. Smith imposed in U.S. District Court in Providence, R.I.

"Companies that handle hazardous chemicals like mercury need to follow the law designed to protect the public and the environment. This $18 million penalty is an indication that environmental crimes will not be taken lightly and violators will be held accountable," said Acting Assistant Attorney General Cruden.

"This is a significant penalty for what was a significant hazard to Pawtucket residents," U.S. Attorney Neronha said. "We are particularly pleased with the creative way in which Judge Smith fashioned the penalty, directing $12 million to benefit the people of Pawtucket."

"Today's sentence should serve as proof that EPA's Criminal Investigation Division will vigorously pursue those whose criminal conduct puts the American public and environment at risk," said Special Agent in Charge Hubbard.

In October 2008, a jury in Providence found Southern Union guilty of illegally storing mercury for several years at a site off Tidewater Street, near the Seekonk River. The Houston-based company owned New England Gas for several years.

During the trial in 2008, the government presented evidence that, in 2001, Southern Union began removing from customers' homes gas regulators that contained mercury. Southern Union employees brought the regulators to a facility on Tidewater Street in Pawtucket, where the regulators, and later loose mercury, were stored in a shed. Southern Union initially hired an environmental services company to prepare the mercury for shipment to a processing facility in Pennsylvania.

The recycling and reclamation ceased at the end of 2001. However, gas company technicians continued to remove regulators from customers' homes, and the company continued to store at Tidewater Street both loose liquid mercury -- in containers such as glass jars and a plastic jug -- and regulators that still contained mercury. A local company official drafted proposals to renew the removal project, but the company never finalized those proposals or put them out to bid.

In September 2004 three youths broke into the mercury storage building and took several containers of liquid mercury. They broke some of them, spilling mercury around the facility's grounds, and took some of the mercury to a nearby apartment complex, where it was also spilled.

For about three weeks, spilled mercury remained undetected at the Tidewater facility and at the apartment complex. After the contamination was discovered, the apartment complex was evacuated, and its 150 tenants were displaced for two months while the mercury was cleaned up.

In addition to fining Southern Union $6 million, Judge Smith put the company on two years probation. As a condition of probation, he ordered the company to pay $11 million to the Rhode Island Foundation for the establishment of environmental remediation and education projects and children's health initiatives. He also ordered that the company pay $1 million in $200,000 increments to the Rhode Island chapter of the American Red Cross, Hasbro's Children's Hospital and the DEM Environmental Response Fund. Judge Smith stayed the fine and other assessments while the company appeals the conviction.

The investigation that led to the prosecution was a joint effort of the Environmental Protection Agency, Criminal Investigation Division; the DEM, Office of Criminal Investigation; the DEM Office of Emergency Response and the DEM Office of Compliance and Inspection.

The case is being prosecuted by the Justice Department's Environment and Natural Resources Division and the U.S. Attorney's office for the District of Rhode Island.

Source: U.S. Dept. of Justice