Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS.
PFOA Regulatory Notice of Non-Compliance –
In September 2021, the NJDEP issued a Notice to Middlesex based on self-reporting by Middlesex that the level of PFOA in water treated
at its Park Avenue Wellfield Treatment Plant in New Jersey exceeded a recently promulgated NJDEP standard effective in 2021. Neither the
NJDEP nor Middlesex characterized this exceedance as an acute health emergency. However, Middlesex was required to notify its affected
customers and the Company complied in due course. Water currently being delivered to customers is in compliance
with all USEPA and NJDEP drinking water standards, including the newly established water quality standard for PFOA.
In November 2021, the Company was served with two
PFOA-related class action lawsuits seeking restitution for medical, water filter replacement and other claimed related costs. These lawsuits
are in the early stages of the legal process and their ultimate resolution cannot be predicted at this time. The Company’s insurance
provider has acknowledged coverage of potential liability resulting from these lawsuits. For further discussion of this matter, see Item
7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, Regulatory Notice of Non-Compliance.
The following summarizes the legal complaints brought against Middlesex related to this matter:
● Vera et al. v. Middlesex Water Company - On October 29, 2021, a complaint was filed in the
Superior Court of New Jersey, Middlesex County seeking restitution, equitable and injunctive relief for the costs of (1) seeking medical
advice; (2) installing home water filters; (3) purchasing bottled water; and (4) court-supervised medical monitoring/testing going forward.
On November 19, 2021, a first amended complaint was filed together with motions for Class Certification and Injunctive Relief. On December
17, 2021, the parties entered into a Stipulation where it was agreed that Plaintiff’s motion for injunctive relief would be withdrawn.
On February 16, 2022, Middlesex filed a Motion To Dismiss Plaintiffs’ complaint for: (1) failure to include an indispensable party,
3M Company (3M) , whom Middlesex claims is the source of the PFOA in the Company’s wells; and
(2) failure to state legally cognizable claims in support of all of the counts set forth in the complaint. Plaintiff’s motion for
Class Certification and further discovery is postponed pending the outcome of Middlesex’s Motion To Dismiss. On
April 21, 2022, the Judge granted Vera’s Motion for Class Certification and granted in part and denied in part Middlesex’s
Motion to Dismiss. On May 4, 2022, the Company impleaded 3M as a third-party defendant in this lawsuit. The Company has also
initiated a separate lawsuit against 3M seeking to hold 3M accountable for introduction of perfluoroalkyl substances, which include
PFOA, into the Company’s water supply at its Park Avenue Wellfield facility. On July 6, 2022, the Company filed a
Motion to Remove this case from New Jersey Superior Court to the United States District Court for the District of New Jersey. Vera
is currently challenging Middlesex’s Motion To Remove at the U.S. District Court for the District of New Jersey in an attempt to
remand the case back to the Superior Court of New Jersey.
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● Lonsk et al. v. Middlesex Water Company and 3M Company
- On November 9, 2021, a complaint was filed in the United States District Court, District of New Jersey seeking Class Certification
and restitution, equitable and injunctive relief for the costs of (1) seeking medical advice; (2) installing home water filters; (3) purchasing
bottled water; and (4) all other claimed related costs. On December 23, 2021, the parties agreed to postpone the filing date of Middlesex’s
and 3M’s answers to the complaint to January 14, 2022 at the earliest. This filing date was subsequently further postponed to March
1, 2022. On March 4, 2022, Middlesex filed a Motion to Dismiss Plaintiffs’ complaint. On April 15,
2022, Plaintiffs filed an Amended Complaint. On July 7, 2022, this case was reassigned to a new trial judge at the United States District
Court for the District of New Jersey. On October 31, 2022, the trial judge in this matter dismissed Middlesex’s and 3M’s motions
to dismiss the Plaintiffs’ complaint and Middlesex and 3M filed answers to Plaintiffs’ amended complaint on November 21, 2022.
Discovery in this case is currently underway with a scheduled end date of January 9, 2024.
The Company is a defendant in other lawsuits in the
normal course of business. We believe the resolution of these pending claims and legal proceedings will not have a material adverse effect
on the Company’s consolidated financial statements.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
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PART II