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Plainfield Twp., Wolverine Worldwide file court paperwork to settle financial dispute

Plainfield Township said Wolverine Worldwide still owes $19M in the settlement over the PFAS crisis. However, Wolverine believes additional estimates are needed per the Consent Decree.
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Posted at 7:37 PM, Jul 07, 2023
and last updated 2023-07-07 20:16:23-04

PLAINFIELD TOWNSHIP, Mich. — In 2020, Wolverine Worldwide, the State of Michigan and Plainfield and Algoma townships settled a lawsuit regarding the PFAS contamination crisis that residents endured. The per and polyfluoroalkyl substances, also known as the forever chemical, were discovered in the townships’ water systems and led to residents experiencing a variety of health concerns.

Disagreement over $19M in Plainfield Twp. PFAS settlement

Wolverine Worldwide, a global shoe company based in Rockford, agreed to pay $62 million to extend municipal water to the impacted homes.

The company said in a statement to FOX 17 that it completed that project, extending water to more than 1,200 homes. So, on Thursday, Wolverine filed paperwork with the U.S. District Court of Western Michigan Southern Division, asking the court for a ruling that “it satisfied its obligations to Plainfield Charter Township.”

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The Plainfield Township office

Plainfield Township Manager Cameron Van Wyngarden said his office was “frustrated and disgusted,” but not shocked.

“Yesterday [Thursday], we were surprised to find out that Wolverine no longer feels compelled to pay their full agreed part amount in the settlement of the $69.5 million, and gave us notice the they plan to default on the last $19 million of the agreement, ” said Van Wyngarden during an interview with FOX 17 on Friday.

Van Wyngarden asked FOX 17 to meet at the intersection of Pine Island and Pine Island Court, which was under construction. He said it’s one of the locations where the township is working to clean up the contamination issues.

The street was covered in dirt and blocked off with orange barriers and cones.

“This came kind of out of the blue that they’ve alleged that they’ve paid the full amount,” he said. “As we’re standing here on-site you can see that the work is not complete. So, how they can claim that they’ve paid for all the work is really dumb-founding.”

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Construction continues at Pine Island and Pine Island Court

FOX 17 went to Wolverine Worldwide's headquarters in Rockford, seeking an interview. However, a receptionist said no one was available this week due to the holiday.

Wolverine Worldwide did provide a statement, as mentioned above, and said that it is abiding by the terms of the Consent Decree and paid for the costs of the water service lines.

Here is Wolverine's full statement:

“As part of a February 2020 Consent Decree, Wolverine Worldwide agreed to pay the total actual costs to extend municipal water to more than 1,000 properties in Plainfield and Algoma townships, up to a maximum amount of $62 million.  Wolverine has held up its end of the Consent Decree by paying the full costs to install municipal water – more than $40 million over the past several years, which includes not only the installation of the municipal water service lines, but also all hookup and connection fees that homeowners typically pay on their own, as well as the Townships’ administrative costs, engineering and legal fees, and other contingencies.”

“The project is coming to a close and running almost $20 million under budget, so Wolverine asked Plainfield Township multiple times whether it has incurred any additional costs to extend municipal water beyond what Wolverine has already paid. Wolverine stands ready to pay these costs, just as it has over the past few years, but unfortunately the Township has not provided any support for them.”

“Rather than abide by the terms of the Consent Decree, Plainfield Township instead demanded payment of the full $62 million – a position that directly conflicts with the Consent Decree that was reviewed by the public and approved by a federal judge.  As a result, yesterday Wolverine Worldwide filed a request in federal court seeking to hold Plainfield Township to the terms of the Consent Decree, to confirm that Wolverine’s payment is limited to the Township’s total actual project costs, and to prevent the Township from recovering costs that it has not incurred.”

Wolverine said in a clarifying statement, emailed to FOX 17 on Friday afternoon, that there’s also $7.5 million set aside for a new well field or water treatment plant.
The company stated:

“Under the Consent Decree, Wolverine Worldwide agreed to fund not only the actual costs of municipal water extension up to a limit of $62 million, but also agreed to partially fund Plainfield Township’s new wellfield and/or water treatment system up to a limit of $7.5 million. This was agreed to by Plainfield Township as part of the settlement. Wolverine has not yet paid this additional amount towards the wellfield and/or water treatment system because Plainfield Township has not yet provided cost estimates as required under the Consent Decree. However, Wolverine will submit payment and continue to fully comply with the Consent Decree after receiving the Township’s estimates.”

Read Wolverine Worldwide's court filing below:

Wolverine Worldwide Filing by WXMI on Scribd

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Wolverine Worldwide headquarters in Rockford

In response, on Thursday, Van Wyngarden said the township filed court paperwork, asking the judge to intervene and hold Wolverine Worldwide accountable to the full settlement that was agreed upon in 2020.

“They’ve been very difficult to work with in trying to dodge their responsibility. We have residents here who have gone through a lot,” Van Wyngarden said. “They’ve gone through health concerns, continue to have heath concerns, concerned that the investment in their property isn’t going to hold. All of these concerns, we’ve been working to alleviate the concerns of our residents and we’ve been fighting Wolverine every step of the way.”

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