Lawsuit: '5 million pounds of arsenic' at Charlotte plant

CHARLOTTE – A lawsuit filed by a company intent on purchasing a former Charlotte manufacturing facility alleges it contains "5 million pounds of arsenic and cadmium contamination" that was not disclosed by the seller.

The lawsuit describes the levels of arsenic in bricks in the furnace systems at the former Owens-Brockway Glass Container, Inc. plant in Charlotte as an "outrageously high level of pollutants," six times higher than acceptable.

State officials Monday stressed that the contamination does not present a hazard to the community or environment as long as the bricks are disposed of properly.

Owens-Brockway, a subsidiary of Owens-Illinois Group, Inc. makes glass containers for the food and beverage industry at factories across the country. It operated the plant on Packard Highway for 40 years before closing it in 2010. It sold the 102-acre site to AP CH-MI, LLC in July of last year.

AP CH-MI, LLC, which has offices in Bingham Farms, filed the lawsuit Thursday, April 16 in Oakland County Circuit Court. It has since been moved to U.S. District Court.

According to the lawsuit:

•AP CH-MI agreed to demolish three brick regeneration and melting furnace systems on the site as part of the purchase agreement.

•Tests by a firm hired by AP CH-MI with the consent of Owens-Brockway determined there are 5 million pounds of arsenic and cadmium contamination at the plant which was not disclosed by Owens-Brockway.

•Officials from both companies and the Department of Environmental Quality met after the contamination was found and Owens-Brockway locked AP CH-MI, LLC out of the facility soon after.

Owen-Brockway attorney David Arnold said that meeting occurred last month.

He said the DEQ assessed the work being done at the property by AP CH-MI, LLC and cited the company for numerous violations as a result.

Arnold said that's why Owens-Brockway insisted work be halted.

He said there's "no merit" to AP CH-MI's claims that Owens-Brockway didn't disclose what contamination exists at the Charlotte site.

"The contract provided them with ample information regarding what is at that plant," said Arnold.

DEQ Project Manager Kim Sakowski confirmed state officials met with people from both companies last month to discuss the proper method for disposing of the contaminated bricks and to "educate" Owens-Brockway on its liability of the property's clean-up.

She also confirmed that AP CH-MI, LLC was cited for improper disposal of the bricks.

Charlotte City Manager Gregg Guetschow said city officials weren't aware of the lawsuit or the allegations of contamination.

Bryan Myrkle, Charlotte's community development director, said he knew about AP CH-MI's intent to purchase the property. He said they planned to demolish portions of the facility and prepare the property for reuse.

"I understand that they were having a difficult time with Owens-Brockway," he said.

Calls seeking comment from AP CH-MI's attorney were not returned.

Owens-Brockway has 30 days to file a response to the lawsuit in District Court.

Sakowski said it's her understanding that Owens-Brockway has since assumed responsibility for the brick disposal and the property's clean-up. She said the company is liable for any contamination at the Packard Highway plant.

Contamination an issue in 2009

It isn't the first time contaminants were found on the property. In 2009, the DEQ required Owens-Brockway to submit a remediation plan for a portion of the property used for disposal, where some levels of arsenic, lead and selenium were found in the soil.

"Based on the information we had, it did not affect the water supply because they completed the clean-up," said Sakowski.

She said the same should prove true of the contaminated bricks, so long as they are disposed of properly.

"As long as the bricks are properly disposed of, they will not pose a hazard," she said. "If sometime in the future we're aware of a problem, we would contact Owens."

State records show Windsor, Ontario-based Shipley Righton attorney Jeff Slopen filed LLC paperwork with the state last year creating AP CH-MI. Slopen did not return a call seeking comment.

AP CH-MI is alleging it has millions of dollars' worth of equipment locked at plant property that it doesn't have access to and has lost millions of dollars' worth of scrap orders and property sales due to Owens-Brockway's actions.

At issue is $750,000 the company placed in an escrow account with the title company at the time of the sale.

Owens-Illinois filed a notice of default on the purchase agreement April 13. AP CH-MI filed the lawsuit three days later.

Check back for updates.