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West Virginia American Water Settles Suits, Will Pay $2.5 Million
Posted Sunday, October 18, 2009 ; 06:00 AM | View Comments | Post Comment

Settlements involve three different civil suits.

CHARLESTON -- The state’s largest water provider has settled three civil suits during the past several weeks, agreeing to pay $2.5 million in damages.

West Virginia American Water provides water service to more than 600,000 customers statewide. The utility recently settled separate cases involving two former employees and a Cabin Creek contractor.

The largest sum was awarded to James A. Nagy, who worked for the company for 23 years. Court records show that he was awarded $1.75 million in an Oct. 1 verdict. Nagy sued the company, alleging age discrimination after he was terminated from his job in March 2007. The payment includes $900,000 for future lost wages.

Another case involved former West Virginia American Water President Chris Jarrett. According to court records from that case, Jarrett retired from West Virginia American Water in January 2006 after working 36 years for the company.

Jarrett filed a lawsuit alleging the company withheld compensation from him. Court records show he initiated an action under the West Virginia Wage Payment and Collection Act to recover liquidated damages and was successful, receiving a payment of $107,802.

Jarrett originally was owed $35,934 but was awarded additional punitive damages based upon the company’s delay in paying the compensation, court records said.

West Virginia American Water also settled a lawsuit with Tralyn Inc., a subcontractor the utility hired to do some work. According to court records, West Virginia American Water fired Tralyn after gas and water lines broke in Dunbar, forcing several businesses and a school to close in December 2007.

The water company then filed a lawsuit alleging billing irregularities in Lewis County against Tralyn. Tralyn filed a separate lawsuit in Kanawha County, where both cases were eventually merged. The two sides eventually settled their legal battles in September. As part of that settlement, Tralyn received $693,601.88, according to court records.

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User Comments [ post comment ]
User Comment
Joe
10/19/09 at 1:54 AM
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To pay in the form of higher costs? Customers of any utility will always see costs raise because of failing infrastructures and abuse of our resources. This company cannot increase their rates unless it is approved by the WV Public Service Commission which has already approved a rate increase this last March... an increase of about $1.50. The investors in this company are the ones who are being affected. I'm assuming you have running water; perhaps you should go ask the several hundred thousand West Virginians who would gladly pay just for access to running water what they think about this instead.
User Comment
Bill
10/18/09 at 7:20 AM
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Wonder why they don't say that thetopay forthese suits thecustomer will have to pay in the form o fhighercosts

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