Court sides with mill in Fox River cleanup

A lawyer for the company Appleton, formerly known as Appleton Papers, Inc., says two insurance companies will have to contribute $5 million each toward the cleanup of the Fox River.

There's been a long-running dispute over who should pay for the costly cleanup of a 13-mile stretch of the Fox River.

Late last year, a federal judge ruled the company Appleton and its former owner, NCR, were the two companies responsible for most of the pollution.

They're on the hook for millions of dollars to help pay for the cleanup of PCB's that were dumped in the river decades ago. PCB's are a byproduct of carbonless paper production.

On Tuesday, however, an appeals court ruled the insurance companies that covered Appleton when the PCB's were discharged are liable to help pay the bill.

"We believe that means those two companies are ultimately responsible for $5 million each toward the cleanup," said Ron Ragatz, an attorney for Appleton.

Ragatz said Munich Re AG and Westport Insurance Corporation have fought in court to not pay their policy limits. A spokesperson for Munich Re AG declined to comment about the ruling. Westport Insurance Corporation did not return FOX 11's calls.

One of the groups that fought hard to make the river cleanup happen was the Clean Water Action Council. Curt Anderson, one of the group's leaders, said he's glad the insurance companies are being held responsible too.

"By not doing their job, they were enablers for the paper industry ... But the paper industry still paid their premiums so they should have been covered," said Anderson.

The cleanup process started last year and is on-schedule. Officials say the ruling only affects who has to pay for it in the end.

"Money is being spent as we speak cleaning up the river. A lot of money is being spent, so we will have to go back to (Brown County) Judge Zuidmulder at a certain point to ask him to declare that its now time for Westport (Insurance Corporation) to start paying some of that money," said Ragatz.

The court decision only affects two of Appleton's nine insurance companies. The company reached undisclosed settlements with the other seven.

Munich Re AG and Westport Insurance Corporation could still appeal to the Wisconsin Supreme Court.