Alcoa 2011 Annual Report Download - page 50

Cost Recovery Action. As previously reported, and noted above, in October 2007, DPNR filed a CERCLA cost
recovery suit against SCRG. After the court denied entry of the Agreement and Consent Decree in October 2008, the
cost recovery case lay dormant until May 2009, when SCRG filed a third-party complaint for contribution and other
relief against several third-party defendants, including AWA and SCA. SCRG filed an amended third-party complaint
on August 31, 2009, and served it on third-party defendants in mid-September 2009. AWA and SCA filed their answer
to the amended third-party complaint on October 30, 2009. On January 8, 2010, DPNR filed a motion to assert claims
directly against certain third-party defendants, including AWA and SCA. On January 29, 2010, the court granted
plaintiff’s motion. On November 15, 2010, plaintiff and all defendants filed motions for summary judgment addressing
various issues relating to liability, recoverability of costs, and divisibility of harm. On March 4, 2011, the court issued a
memorandum and order granting defendants’ motions for summary judgment and entered judgment in favor of the
defendants. On March 18, 2011, DPNR filed a motion for reconsideration of the order and judgment, and that motion
was denied on April 15, 2011. On May 16, 2011, DPNR filed an appeal with the U.S. Court of Appeals for the Third
Circuit. That appeal remains pending.
Abednego. As previously reported, on January 14, 2010, Alcoa was served with a complaint involving approximately
2,900 individual persons claimed to be residents of St. Croix who are alleged to have suffered personal injury or
property damage from Hurricane Georges or winds blowing material from the property since the time of the hurricane.
This complaint, Abednego, et al. v. Alcoa, et al. was filed in the Superior Court of the Virgin Islands, St. Croix
Division. The complaint names as defendants the same entities as were sued in the February 1999 action earlier
described and have added as a defendant the current owner of the alumina facility property. In February 2010, Alcoa
and SCA removed the case to the federal court for the District of the Virgin Islands. Subsequently, plaintiffs filed
motions to remand the case to territorial court as well as a third amended complaint, and defendants have moved to
dismiss the case for failure to state a claim upon which relief can be granted. On March 17, 2011, the court granted
plaintiffs’ motion to remand to territorial court. Thereafter, Alcoa filed a motion for allowance of appeal. The motion
was denied on May 18, 2011. The parties await assignment of the case to a trial judge.
Proposed Consent Decree for Certain St. Croix Proceedings. On November 21, 2011, Alcoa, SCRG and the DPNR
lodged a proposed Consent Decree with the U.S. District Court for the Virgin Islands, which Consent Decree contains
terms of a settlement between the parties resolving the following matters:
• the Contract Action;
• the NRD Action;
• the SCA-Only Territorial Action;
• the Multi-Party Enforcement Action; and
• the Cost Recovery Action.
On January 12, 2012, the court held a hearing on the issue of whether to approve and enter the Consent Decree. On
February 13, 2012 the court granted the motion to enter the Consent Decree.
Other Contingencies
In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be
instituted or asserted against Alcoa, including those pertaining to environmental, product liability, and safety and health
matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot now be
determined because of the considerable uncertainties that exist. Therefore, it is possible that the company’s liquidity or
results of operations in a particular period could be materially affected by one or more of these other matters. However,
based on facts currently available, management believes that the disposition of these other matters that are pending or
asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the
company.
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