Judges denies motions to dismiss Stella PFAS lawsuit

The federal lawsuit brought by a group of Town of Stella property owners who allege their private drinking wells were contaminated by PFAS-laden sludge from the Rhinelander paper mill has reached a new stage as Judge William M. Conley of the U.S. District Court for the Western District of Wisconsin has denied a number of defense motions seeking dismissal of the action.
In a 31-page ruling issued on June 4, Conley denied all of the defense motions to dismiss except for a trespass claim against the chemical giant 3M.
The defendants consist of two groups: the current and former owners of the Rhinelander paper mill (Ahlstrom and Wausau Paper) and the chemical companies 3M and BASF.
The court’s June 4 ruling pertains only to motions filed by Ahlstrom, Wausau Paper and 3M. BASF is new to the case, having been added in April, nearly two years after the plaintiffs filed their original complaint in August 2023. In a statement to the Star Journal, BASF promised it will mount a “vigorous” defense. According to court records, its formal response to the lawsuit is expected later this month.

The 48 named plaintiffs in the case, all property owners in eastern Oneida County, have alleged that the paper mill defendants for years improperly disposed of PFAS-laden waste by spreading it on farmland where it could leach onto their properties and into their drinking water.
3M and BASF are accused of designing and producing defective products and failing to warn the paper companies that purchased them of the dangers associated with PFAS.
PFAS are a class of human-made, degradation-resistant chemicals that have been found in water, soil, air, and human blood.
Studies have shown a link between human exposure to PFAS and adverse health effects and some of the Stella plaintiffs allege they have experienced health issues they attribute to PFAS contamination.
“PFAS concentrations in plaintiffs’ private wells and nearby lakes are among the highest in the country and have been found at levels that are thousands of times greater than EPA health limits,” the plaintiffs alleged in their amended complaint.
The contamination in Stella was discovered in late 2022 after the DNR conducted a statewide study of private drinking wells.
In its ruling, the court summarized the plaintiffs’ class and individual claims as follows: (1) design defect and/or defective product against defendants 3M and BASF; (2) failure to warn/inadequate instructions or warnings against 3M and BASF; (3) negligence resulting in property damage against all defendants; (4) private nuisance against all defendants; (5) trespass against all defendants; and (6) strict liability for abnormally dangerous activity against defendants Ahlstrom and Wausau Paper.
Conley determined that all of the claims should move forward except for the trespass claim against 3M which he noted the plaintiffs have chosen not to pursue.
With respect to the other allegations, the plaintiffs’ complaint “contain[s] sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face,’” he wrote.
“A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged,’” he added, quoting the relevant legal standard.
Conley stressed that the plaintiffs may or may not prevail at trial but, at this point, they have adequately pleaded the listed claims.
Further discovery may prove helpful in determining the viability of many of the claims, he noted.
When offered an opportunity to comment on the ruling, an Ahlstrom spokesperson advised the Star Journal it is the company’s policy not to provide comment on pending litigation.
A determination as to whether the case will be certified as a class action is not expected until 2026. The trial is currently scheduled for March 2027.