$554-Million Verdict Against Dow, Rockwell

A federal jury recommended Tuesday that Dow Chemical Co. and the former Rockwell International Corp. pay $553.9 million to thousands of property owners who say their land was contaminated by plutonium from the former Rocky Flats nuclear weapons plant.

The jury concluded that the firms damaged private property around the site through negligence that caused “class members to be exposed to plutonium and [placed] them at some increased risk of health problems.”

The lawsuit was filed in 1990 on behalf of 13,000 people. The jury in U.S. District Court in Denver also said the damage from the radioactive material might never go away.

The verdict called for punitive damages of $110.8 million against Dow Chemical and $89.4 million against Rockwell. The jury also recommended that the companies pay about $352 million in actual damages.

The final award is likely to be less because of limits in state and federal law but could still reach $352 million after U.S. District Judge John Kane reviews the verdict, said Louise Roselle, an attorney for some of the plaintiffs.

Dow said it would appeal, saying the judge had improperly instructed the jury. The company said property values in the area had increased and scientific studies had shown no harm to residents’ health or property.

Attorneys have said the government would cover any damages and legal bills for the companies because they were contractors operating the sprawling Cold War site near Denver on behalf of the Energy Department.

A department spokesman did not immediately respond to an after-hours request for comment.

Jury deliberations in the class-action lawsuit took 18 days and followed a four-month trial. The suit claimed that the plant contaminated neighboring land, lowering property values.

The now-defunct site made plutonium triggers for nuclear warheads for decades before it was closed in 1989. Much of the 6,240-acre site will be transformed into a wildlife refuge. Last year a contractor declared a 10-year, $7-billion cleanup project complete.

Milwaukee-based Rockwell, now known as Rockwell Automation Inc., and Midland, Mich.-based Dow operated the plant at separate times under contract with the government.

The lawsuit claimed that the companies intentionally mishandled radioactive waste and then tried to cover up their actions. Defense attorney David Bernick said claims of a coverup were wrongheaded and that contamination off-site was minuscule.

After the verdict, Bernick said the judge made significant mistakes in instructing the jury.

“The instructions made it apparent the judge was applying an extreme view of the law,” he said.