CRYSTAL GOOD, et al. v. WEST VIRGINIA-AMERICAN WATER COMPANY, et al.

CourtDistrict Court, S.D. West Virginia
DecidedMarch 27, 2026
Docket2:14-cv-01374
StatusUnknown

This text of CRYSTAL GOOD, et al. v. WEST VIRGINIA-AMERICAN WATER COMPANY, et al. (CRYSTAL GOOD, et al. v. WEST VIRGINIA-AMERICAN WATER COMPANY, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CRYSTAL GOOD, et al. v. WEST VIRGINIA-AMERICAN WATER COMPANY, et al., (S.D.W. Va. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF WEST VIRGINIA AT CHARLESTON

CRYSTAL GOOD, et al.,

Plaintiffs,

v. Civil Action No. 2:14-cv-01374

WEST VIRGINIA-AMERICAN WATER Consolidated with: COMPANY, et al., Civil Action No. 2:14-cv-11011 Defendants. Civil Action No. 2:14-cv-13164 Civil Action No. 2:14-cv-13454 Civil Action No. 2:16-cv-01606

MEMORANDUM OPINION AND ORDER

Pending is the motion by class members/movants Bryan Goodson (“Goodson”), the Estate of Daniel Stewart (“Stewart”), the Estate of Linda Stayer (“Stayer”), Duane Maddy (“Maddy”), and John Varney (“Varney”) (together, “Movants”) to enforce the amended settlement agreement, filed August 3, 2021. I. Background The class representatives instituted this class action in this court on January 13, 2014. ECF No. 1. On June 8, 2018, the court entered an order granting final approval of the Amended Class Action Settlement Agreement (“Settlement Agreement”) agreed to by the parties and directing entry of judgment. ECF No. 1212 (order approving settlement). The class representatives and the defendants negotiated the Settlement Agreement over a series of months, including the court’s rejection of the parties’ first proposed settlement agreement because, inter alia, it contained an insufficient “review and ‘appeals’ process when disputes over claims arise.” ECF No.

1146 at 52 (order rejecting initial settlement). As the court recounted at the time, the proposed settlement agreement envision[ed] a tripartite review process, with ultimate discretion allocated to the Settlement Administrator in most cases. First, the Settlement Administrator review[ed] a claimant’s eligibility and evaluate[d] the appropriate amount of compensation in accordance with the terms of the agreement. Second, claimants who dispute[d] their awards m[ight] “appeal” to the Settlement Administrator for reconsideration. Third, the Settlement Administrator m[ight] refer any issues or questions about the Settlement Agreement that ar[ose] during implementation of the claims process to a “Claims Oversight Panel” composed of four members, two selected by plaintiffs and one selected by each of [defendants] Eastman and WV American Water. Interpretations of the Settlement Agreement by the Claims Oversight Panel only ha[d] binding authority on the Settlement Administrator when issued unanimously. Id. at 55 (citing initial proposed settlement agreement, ECF No. 1136-1, §§ 6.2.5-6.2.6). The court was concerned that the proposed process was “not exhaustive enough to prevent the court’s further involvement in administrative matters.” Id. Namely, “[a]bsent some kind of independent review panel that can hear appeals directly, rather than merely advise the Settlement Administrator, the court [was] concerned that one of the key justifications for settlement -- avoidance of further litigation -- evaporates.” Id. at 56. The court thus advised the parties that “[a]n appeals or mediation panel, or both, would facilitate resolution of claims without the court’s involvement and the

concomitant expense and drain on judicial resources.” Id. The parties then proposed the Settlement Agreement. Settlement Agmt., ECF No. 1163-1. The Settlement Agreement kept a tripartite review process, but the third stage of review fell to an Appeal Adjudicator -- agreed upon and nominated by the parties and approved by the court -- who reviewed claims de

novo. Id. § 6.2.5.2. The Appeal Adjudicator’s review was circumscribed by the terms of the Settlement Agreement and Distribution Protocols, which contain the criteria for evaluation of claims and are incorporated into the Settlement Agreement. Id. § 6.2.5.5; see also Distrib. Protocols, ECF No. 1163-1. Moreover, interpretations of the Settlement Agreement and Distribution Protocols by the Claims Oversight Panel were binding when a majority agreed; otherwise, the Appeal Adjudicator had the power to propose an interpretation that became binding unless a majority of the Claims Oversight Panel objected. Settlement Agmt. § 6.2.6. “The decision of the Appeal Adjudicator shall be final and there is no right to appeal the decision of the Appeal Adjudicator to the Court.” Id. § 6.2.5.8. In granting preliminary approval of the Settlement Agreement, the court noted that the “Settlement Agreement was entered [by the parties] only after extensive arm’s length negotiation by experienced counsel, and with

revisions resulting from the Parties’ consideration of additional issues identified in” the court’s rejection of the first proposed agreement. ECF No. 1166 at 3. Movants each submitted medical claims to the Settlement Administrator and received an initial award. See Appeals Decisions, ECF No. 1328-6. WV Water objected to each

award, and the Settlement Administrator significantly reduced each award at the second-level review. See id. Last, Movants appealed to the Appeal Adjudicator, who affirmed the reduced awards. See id. at 4, 7-8 (Goodson), 14, 21-23 (Stayer), 28, 32-33 (Stewart), 36-37, 40 (Maddy), 43, 48 (Varney). On August 3, 2021, Movants filed a motion to enforce

the Settlement Agreement, which the court understands as a motion alleging breach of contract. See Movants’ Mot. to Enforce, ECF No. 1323. Movants claim four breaches of the Settlement Agreement: (1) by defendant West Virginia-American Water Company (“WV Water”) when it submitted reports of its own experts, Mem. Supp. Movants’ Mot. to Enforce 3-4, 19-20, ECF No. 1324; (2) by the Settlement Administrator when it retained John Brick, M.D. (“Dr. Brick”), as the consulting medical expert for Movants’ claims, id. at 4-6; (3) by the Settlement Administrator and the Appeal Adjudicator when they relied upon medical testimony that allegedly failed to apply the correct standard

for causation under the Settlement Agreement, id. at 6-11, see also id. at 11-18 (arguing that, by contrast, Movants’ claims were properly supported); and (4) with respect to the claims of Goodson and Stayer, by the Appeal Adjudicator when he allegedly failed to consider all the evidence submitted, id. at 18-19. Movants seek an order directing payment of the amounts originally awarded by the Settlement Administrator or, alternatively, to terminate the contract as it pertains to them and allow them to pursue their claims in court. Id. at 1.

II. Discussion

A. Jurisdiction

Although “[i]t is well-settled that a federal court may exercise ancillary jurisdiction to enforce its judgments,” the “[e]nforcement of [a] settlement agreement . . . is more than just a continuation or renewal of the dismissed suit, and

hence requires its own basis for jurisdiction.” Marino v. Pioneer Edsel Sales, Inc., 349 F.3d 746, 752 (4th Cir. 2003) (alterations in original) (first citing Peacock v. Thomas, 516 U.S. 349, 354 (1996); and 28 U.S.C. § 1367(a); and then quoting Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 378 (1994)). “[A] district court’s ancillary jurisdiction ‘to manage its

proceedings, vindicate its authority, and effectuate its decrees’ provides such an independent jurisdictional basis to enforce a settlement agreement if ‘the parties’ obligation to comply with the terms of the settlement agreement ha[s] been made part of the order of dismissal.’” Id. (alterations in original) (quoting Kokkonen, 511 U.S. at 381).

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Related

Evans v. Jeff D. Ex Rel. Johnson
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516 U.S. 349 (Supreme Court, 1996)
Lillian Hayden v. Atochem North America, Inc.
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Bluebook (online)
CRYSTAL GOOD, et al. v. WEST VIRGINIA-AMERICAN WATER COMPANY, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/crystal-good-et-al-v-west-virginia-american-water-company-et-al-wvsd-2026.