CHARLESTON, W.Va.  — Two companies targeted in a class-action lawsuit in connection with the 2014 chemical spill and water emergency that impacted approximately 300,000 residents in parts of nine West Virginia counties have agreed to pay $151 million in damages.

Details of the settlements by the plaintiffs with West Virginia American Water Company and Eastman Chemical were released Monday evening after the water company’s portion of the case was finalized earlier in the day.

Eastman, the maker of the chemical MCHM that spilled from the Freedom Industries tank farm on the Elk River in Charleston, will pay $25 million in damages while West Virginia American Water’s portion is $126 million. The water company’s Kanawha Valley Plant is just 1.5 miles downstream on the Elk River from where the spill occurred.

The plaintiffs filed the lawsuit claiming the water company wasn’t ready for such an emergency and didn’t respond appropriately. The state issued a “Do Not Use” water order in the hours after the spill. It lasted for several days in some areas.

The term sheet for the WVAWC settlement says $76 million of the settlement amount will be set aside for direct payments to residents and business owners. With very little documentation people will be able to get a check, plaintiffs’ attorney Kevin Thompson said.

“Prove you were a customer. Prove you were in business. Prove you lived here and you will get a check,” Thompson told MetroNews.

A second part of the water company settlement, $50 million, will be set aside for additional claims like those who missed work because of the water crisis or went to the hospital or replaced hot water tanks.

U.S. District Judge John Copenhaver will issue an order in the coming month that will lay out the claims process.

In an earlier hearing Monday, Judge Copenhaver called language in the proposed settlement unacceptable saying it would have left the door open for the water company to recover the cost of the settlement from its customers in a rate case with the state Public Service Commission. The language in settlement reached Monday evening closes that loophole. West Virginia American has agreed not to seek rate recovery for the $4 million cost of the water emergency or the $126 settlement amount, Thompson said.

“Those are two important parts of this settlement that really had to be in place for there to be any justice,” Thompson said. “They’re in place, so justice was served.”

The case was ripe for settlement because of a previous ruling from Copenhaver, according to Thompson.

“(With the settlement) we can give some clarity to what the damages are. Judge Copenhaver did not certify our class for damages only liability. So at the end of the trial we would have known who was guilty but we wouldn’t have known how much they were going to pay. Now we know that,” Thompson said. “By Thanksgiving we would have known that West Virginia American Water and Eastman Chemical were responsible for the chemical spill but it would have been years before we had any clarity on how much people were going to get or when they were going to get it. People need a lifeline right now they don’t need it in five years.”

West Virginia American Water released a statement following the settlement announcement saying it “is not an admission of any liability or fault on the part of our company with respect to the Freedom Industries Chemical spill. We still firmly believe the suits brought against our company were without merit. West Virginia American Water has never been found to have violated any law or regulation in connection with its response to the Freedom Industries chemical spill. A resolution through a settlement allows us and our dedicated employees to serve our customers without the distractions of ongoing lawsuits. Our commitment to the highest standards of customer service will always be a top priority,” the statement said.

Thompson said the plaintiffs stand by their case.

“We stand by our allegations and they stand by their defenses. Unfortunately we’re not going to have a chance to try it out in court. I think we would have prevailed–clearly or I wouldn’t have brought the suit,” Thompson said.

Judge Copenhaver has scheduled a hearing to further finalize the settlement for Nov. 14. The judge will approve all attorney fees, Thompson said.

“The judge will decide. It’s going to be an open process,” Thompson said.

The settlements are meant to serve as a global resolution to all of the civil cases filed against the two companies.

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