COUNTY ATTORNEY VINCE RYAN SAYS WATSON BANKRUPTCY WILL NOT STAY COUNTY LAWSUIT

Harris County Attorney Vince Ryan today said the bankruptcy filed by Watson Grinding and Manufacturing on Thursday will not stop the lawsuit his office filed last week.

“The bankruptcy may impact lawsuits filed by others,” Ryan said, “but because the purpose of our suit is to protect the public, we will be able to move forward with it.”

The County’s Lawsuit was one of several filed in the wake of a January 24 explosion at the company’s site on Gessner Road in Houston.  The explosion caused damage to 450 structures and killed two Watson employees and a nearby resident.

The County Attorney’s lawsuit alleges that Watson discharged air pollutants into the atmosphere when a 2,000 gallon propylene tank exploded. Flying glass and debris injured many residents while they slept. As a result of the blast, many nearby residents cannot occupy their damaged homes while others now live in damaged structures.

On Thursday the company filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court.

The County’s lawsuit seeks to prevent the company from resuming operations until an independent third-party expert completes an analysis and finds that operations will not cause further fires or explosion. The County is seeking a detailed inventory of all substances, products, and materials located at Watson and wants Watson ordered to share any air, water or soil samples it took.

County Attorney Ryan said that under bankruptcy law a county’s lawsuit to stop a violation of environmental, safety, or similar laws is not stayed under the rules normally applicable to bankruptcy cases.  He cited a 2005 case, In re Gandy, as a similar case where theUnited States Bankruptcy Court, held that these type of lawsuits are not stayed by bankruptcy actions.

“While our lawsuit is not seeking to recover for the damages the neighbors suffered, we are working to make sure that this facility and others like it don’t operate in ways that are hazardous to their neighbors,” Ryan said.

Click here to view the county’s lawsuit.