February 23, 1967
Federal court to hear case on Price-Anderson Act
What may be the largest lawsuit in American history is now headed for federal court. Yesterday, a consolidated class action complaint was filed against Detroit Edison and the Power Reactor Development Company, operators of the now-destroyed Fermi plant near Monroe, Michigan. The class action suit consolidates the thousands of individual suits filed since the meltdown (the first lawsuit was filed on October 6, one day after the meltdown). There are 300,000 plaintiffs named in the consolidated class action complaint, which includes residents and business owners from the evacuation zone surrounding the Fermi plant. [1]
The plaintiffs claim that the Price-Anderson Act violates their constitutional rights. Their case rests on the Fifth Amendment clause that protects individuals against the deprivation of life, liberty, or property without due process of law. [2][3] The plaintiffs say that they have not been fairly compensated for their losses as a result of the Fermi meltdown. The Price-Anderson Act caps liabilities for commercial atomic power plant operators in the event of an accident at $560 million. [4] So far, there have been over 300,000 claimants under the Act, according to insurance pools established shortly after the accident. This works out to just under $2,000 per claimant, only a fraction of the value of their properties, never mind the potential health problems caused by the meltdown. The plaintiffs claim that approximately $30 billion in damages have been caused by the meltdown, or roughly $100,000 per claimant.
The case will be heard by the Eastern District of Michigan US Federal District Court. The court filing brings some small comfort to those who have lost their homes, possessions, and possibly health as a result of the Fermi meltdown. But they likely face a long legal battle. The outcome of the case has implications for atomic power plants throughout the country. If the Price-Anderson Act is found to be unconstitutional, liability insurance may become too expensive for plant operators.