Judge rules lawsuit against New-Indy Containerboard mill can proceed

A judge has denied a motion to dismiss a lawsuit filed against New-Indy Containerboard's paper mill in Catawba, South Carolina, while also denying the company's request to dismiss the suit altogether.

A class action lawsuit alleges the facility is emitting a foul odor, causing numerous health issues for the citizens of surrounding communities. According to WCNC Charlotte, residents have reported headaches, nausea, skin and eye irritation beginning as early as March 2021, with the South Carolina Department of Health and Environmental Control (DHEC) receiving more than 17,000 complaints.

According to U.S. District Court Judge Sherri A. Lydon's order issued Aug. 5, plaintiffs “plausibly stated their private nuisance and negligence and gross negligence claims” against the Ontario, California-based corrugated box, recycled containerboard and virgin linerboard manufacturer.

Attorneys representing the plaintiffs say in a statement, “We are pleased with Judge Lydon’s decision denying New-Indy Containerboard’s motion to dismiss. As alleged in the complaint, New-Indy’s harmful emissions have continued to produce a foul odor and cause numerous health issues for the citizens of surrounding communities.”

The statement continues, “We look forward to continuing the fight to hold New-Indy accountable and help restore quality of life for those affected by the papermill’s [sic] careless operation.”

New-Indy acquired Canada-based Resolute Forest Products’ Catawba paper and pulp mill in 2018. According to New-Indy, the acquisition established a diverse and efficient mill operation with the production of market pulp, lightweight coated papers and specialty grades. The virgin linerboard and market pulp manufacturing mill in Catawba is furnished 100 percent with wood chips.

WCNC says attorneys allege complaints of a foul odor began in 2020 after the facility converted the mill from producing bleached paper to produce containerboard.

The South Carolina DHEC previously fined the Catawba facility $120,000 and is requiring New-Indy to clean up two parts of the mill deemed to be contributing to the odor and symptom-causing fumes, according to WBTV in Charlotte.

The company is required to clean those areas by 2023 and 2026, respectively.

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New-Indy says after restarting the manufacturing process after the conversion of the mill in 2020, it was discovered that excess solids had been sent to the wastewater treatment system and that the system had been minimally maintained by the mill's prior owners, the extent of which New-Indy says did not become clear until after resuming operations. This resulted in higher-than-normal hydrogen sulfide emissions from the wastewater treatment system.

The company says since March 2021 it has taken many steps to improve air quality and reduce hydrogen sulfide emissions that affect the surrounding communities, a timeline of which can be found here.