5th Circ. Orders New Look At $50M Formosa Water Settlement

Law360 (April 30, 2021, 8:11 PM EDT) -- The Fifth Circuit on Friday ruled that a Texas federal judge wrongly construed a portion of a $50 million settlement agreement between Formosa Plastics Corp. and an environmental group, and placed an overly heavy burden on Formosa to prove its compliance with a zero-discharge pledge.

In an unpublished per curiam opinion, a three-judge panel of the Fifth Circuit agreed with Taiwanese plastics company Formosa that U.S. District Judge Kenneth M. Hoyt misconstrued its consent agreement with the San Antonio Bay Estuarine Waterkeeper in a way that fails to distinguish between previous releases of plastic pellets and future releases.

The appellate court tossed...

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