2010 date set for trial on lawsuit against IP

Published 12:00 am Wednesday, October 15, 2008

A trial date has been set in 2010 for a federal lawsuit against International Paper stemming from the May 3 blast at the company Mississippi 3 plant.

U.S. District Judge David Bramlette will hear arguments in a jury trial June 7, 2010, according to the U.S. District Clerk’s Office.

The suit was filed in June on behalf of brothers Kenneth and Robert T. “Terry” Townsend and accuses IP of negligence leading to the explosion that killed one man and injured 17 people. The Townsends were two of several contract workers at the plant when a recovery boiler exploded during routine maintenance.  Compensatory and punitive damages sought are unspecified.

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A suit filed by another contract employee, Glenn Rankin, 11 days after the explosion is pending in Warren County Circuit Court. It seeks $1 million in damages and claims the company was negligent.

One contract worker remains in stable condition at a Georgia burn center due to injuries left by the explosion. Two were released within the past month. About 400 people, including IP’s 306 regular employees, were at the mill when the explosion occurred. All the injured were contract employees.

IP officials have been adamant about a full restart of operations at the plant near Redwood, though no word on a restart date has been announced by company officials.

In August, up to $70 million in Katrina-inspired Gulf Opportunity Zone bonds were approved to finance infrastructure improvements. Upgrades planned before the explosion including a new burner and fuel storage tank are scheduled to begin next year.

About 555,000 tons of linerboard used in corrugated packaging are produced annually at IP’s Vicksburg Mill, which began operation in 1967. The Memphis-based company is the world’s largest paper and pulp producer and lists more than 65,000 full-time employees worldwide.

On Tuesday, the company announced a common stock dividend of 25 cents per share for the quarter ending Dec. 31 for holders of record through Nov. 17.

Since the month began, IP has announced a closing of a container plant in Ohio and layoffs at a plant in Oregon. High costs and the state of the economy were cited.

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Contact Danny Barrett Jr. at dbarrett@vicksburgpost.com.