DuPont 2015 Annual Report Download - page 94

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-35
Class members may pursue personal injury claims against DuPont only for those human diseases for which the C8 Science Panel
determined a probable link exists. At December 31, 2015, there were approximately 3,500 lawsuits filed in various federal and
state courts in Ohio and West Virginia, an increase of about 600 over year end 2014. These lawsuits are consolidated in multi-
district litigation in Ohio federal court (MDL). Based on the information currently available to the company, the majority of the
lawsuits allege personal injury claims associated with high cholesterol and thyroid disease from exposure to PFOA in drinking
water. There are 37 lawsuits alleging wrongful death. In 2014, six plaintiffs from the MDL were selected for the individual trial.
The jury awarded $1.6 in compensatory damages in the first individual trial, captioned Bartlett v DuPont, which was tried to a
verdict in October 2015. The plaintiff alleged that exposure to PFOA in drinking water had caused kidney cancer. DuPont, through
Chemours, is appealing the decision. The second trial, captioned Wolf v DuPont, was scheduled to begin in March 2016 and
involves allegations that exposure to PFOA in drinking water caused ulcerative colitis. A confidential settlement for an
inconsequential amount was reached in January 2016. In January 2016, the court determined that 40 cases, most of which are
expected to involve allegations that exposure to PFOA in drinking water caused cancer, would be scheduled for trial in 2017,
beginning in April of that year. DuPont, through Chemours, denies the allegations in these lawsuits and is defending itself vigorously.
Additional Actions
An Ohio action brought by the LHWA claims, “imminent and substantial endangerment to health and or the environment” under
the Resource Conservation and Recovery Act (RCRA) in addition to general claims of PFOA contamination of drinking water.
Pursuant to the order of the U.S. District Court for the Southern District of Ohio, the case, scheduled for trial in January 2016,
was removed from the trial docket.
PFOA Summary
While it is probable that the company will incur liabilities related to funding the medical monitoring program, such liabilities
cannot be reasonably estimated due to uncertainties surrounding the level of participation by eligible class members and the scope
of testing. DuPont believes that it is reasonably possible that it could incur additional liabilities related to the other PFOA matters
discussed above; however, a range of such liabilities, if any, cannot be reasonably estimated at this time, due to the uniqueness of
the individual MDL plaintiff's claims and the company's defenses to those claims both as to potential liability and damages on an
individual claims basis, among other factors. As noted above, the company is indemnified by Chemours for these PFOA matters.
Environmental
The company is also subject to contingencies pursuant to environmental laws and regulations that in the future may require the
company to take further action to correct the effects on the environment of prior disposal practices or releases of chemical or
petroleum substances by the company or other parties. The company accrues for environmental remediation activities consistent
with the policy set forth in Note 1. Much of this liability results from the Comprehensive Environmental Response, Compensation
and Liability Act (CERCLA, often referred to as Superfund), RCRA and similar state and global laws. These laws require the
company to undertake certain investigative, remediation and restoration activities at sites where the company conducts or once
conducted operations or at sites where company-generated waste was disposed. The accrual also includes estimated costs related
to a number of sites identified by the company for which it is probable that environmental remediation will be required, but which
are not currently the subject of enforcement activities.
Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend
on the mix of unique site characteristics, evolving remediation technologies, diverse regulatory agencies and enforcement policies,
as well as the presence or absence of potentially responsible parties. At December 31, 2015, the Consolidated Balance Sheet
included a liability of $492, relating to these matters and, in management's opinion, is appropriate based on existing facts and
circumstances. The average time frame, over which the accrued or presently unrecognized amounts may be paid, based on past
history, is estimated to be 15-20 years. Considerable uncertainty exists with respect to these costs and, under adverse changes in
circumstances, the potential liability may range up to $1,000 above the amount accrued as of December 31, 2015. Pursuant to
the Separation Agreement discussed in Note 3, the company is indemnified by Chemours for certain environmental matters,
included in the liability of $492, that have an estimated liability of $291 as of December 31, 2015 and a potential exposure that
ranges up to approximately $610 above the amount accrued. As such, the company has recorded an indemnification asset of $291
corresponding to the company's accrual balance related to these matters at December 31, 2015.