Local News

Settlement reached over Apex chemical explosion

Posted July 23, 2009

— A federal judge on Thursday approved a preliminary settlement agreement to compensate Apex residents who had to leave their homes and businesses in October 2006 after an explosion and fire at a hazardous waste facility.

The Environmental Quality Industrial Services facility erupted into a fireball on Oct. 5, 2006, and officials ordered about 17,000 people to evacuate because they feared that toxic chemicals were in the plume of smoke that spread over Apex.

Sky 5 View Of Apex EQ Site Resident: EQ settlement 'right thing to do'

Residents sued EQ and some of the companies that sent oxygen canisters to the facility for disposal. Investigators have determined that improperly stored canisters caused the rapid spread of the fire throughout the facility.

Some residents alleged health problems from exposure to the smoke from the fire, but environmental tests taken during and after the evacuation showed no harmful effects from the plume.

Under the $7.85 million settlement, which Senior U.S. District Judge Earl Britt signed off on, EQ and two Alabama-based companies agreed to pay up to $750 to each household that evacuated to compensate for the trouble of leaving their home and incidental expenses incurred. Businesses that were forced to close during the evacuation would receive up to $2,500.

The payments would be in addition to earlier payments from EQ to compensate for evacuation expenses.

Denise Hatzidakis not only had to get out of her home but she had to temporarily close the restaurant she owns with her husband.

“People didn’t want to come back to Apex. Even Apex people didn’t want to come back to the evacuation zone because nobody was sure what it was all about,” Hatzidakis said.

Hatzidakis signed onto the class action lawsuit and said it's been a long a difficult three year process.

Hatzidakis said for her it was less about the compensation and more about holding EQ accountable.

“I understand totally that hazardous chemicals are going to happen, especially as our technology grows, but the people who sign up to take responsibility for taking care of this need to be held responsible and do the right thing by them,” Hatzidakis said.

Apex Mayor Keith Weatherly said he was pleased a settlement was reached in the case, and some residents said they hope to finally put the incident behind them.

"It's the right thing to do," resident Greg Chesney said. "I don't think any of us really knew (EQ was) there, and just based on what we heard, that's kind of a dangerous thing to have next door to residential neighborhoods."

Residents and business owners have the choice of accepting the settlement or opting out and pursuing their own lawsuit. Britt has scheduled an Oct. 6 hearing to judge the overall fairness of the settlement.

Attorney fees makes up about $3 million of the settlement total.

EQ previously reimbursed the town of Apex more than $200,000 for its costs in responding to the fire and handling the evacuation.

The company also agreed not to reopen the facility to settle a state fine over environmental violations there.


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  • anb8503 Jul 23, 2009

    I lived less than 2 miles from the plant when this happened and I think this is ridiculous. Unless you have an extremely large family, it does not cost $750 for a hotel room, food, etc for a few days. People are always trying to sue! Everyone should be saying "thank GOD for lawyers" or they wouldn't be able to make a living off of stories like this one.

  • tom547293 Jul 23, 2009

    The city zoning dept. has a lot to do with how areas will utilized. EQ was there long before those houses. If the fire Dept didn't know what was there shame on them too. Apex should share some of the blame along with EQ.

  • Fuquayone Jul 23, 2009

    I am trying to get my claim form. You may have freaked out too being out on your back deck and ingesting yellow haze and wondering what was happening. It was quite an evening. And it was not a 'plant'. It was a small building no one knew was there. That was the problem.

  • injameswetrust2003 Jul 23, 2009

    Not to hold EQ blameless, but these residents claim that they didn't know the plant was there? If Shearon Harris has a problem can residents of New Hill plead ignorance also? I think the real problem here might be: GREED.

  • artist Jul 23, 2009

    Layers make me want to puke.

  • WolfPackChaser Jul 23, 2009

    Hearing things like this just makes me SICK! What has happened to America?

  • swc Jul 23, 2009

    Homeowners $750.00. Businesses $2500.00. Lawyers $priceless.

  • SlowDecline Jul 23, 2009

    40% to the lawyers...I love this country!