Village of Crestwood Settles Class Action for $500,000

The Chicago Tribune recently reported that the Village of Crestwood, Illinois "will pay residents $500,000 to settle one of the class-action lawsuits filed after it was learned that the southern Chicago suburb had been secretly pumping contaminated water to households for more than 20 years.  Crestwood will also provide residents with free garbage pickup, vehicle stickers and business licenses for two years.  Village officials will also hire an independent environmental consultant to certify that Crestwood's drinking water is safe for the next three years."

During the last meeting of the Environmental Law Committee of the Chicago Bar Association Young Lawyers Section, counsel for the Village stated that the Village is embroiled in another lawsuit.  In that lawsuit, the Village contends that its insurer has the duty to defend (i.e., pay the Village's attorneys) against the class actions.  Likely, the Village will now contend that the insurer has the duty to indemnify (i.e., pay the settlement) as well.

Stay tuned to the Illinois Environmental Law Blog for more news and developments.