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(USA Herald) - A Georgia-based mining company, Thiele Kaolin Co., is locked in a legal battle with environmental consultant firm Environmental Resources Management-Southeast Inc. (ERM). Thiele Kaolin has accused ERM of bungling an assessment of a mineral processing plant and has claimed that the agreement between the two companies does not shield ERM from legal action. In a recent motion, Thiele Kaolin stated that their agreement with ERM "expressly contemplates" the possibility of lawsuits being filed in the event of a liability issue, refuting ERM's claims that the contract makes neither party responsible for financial losses.

The mining company claims that the contract's liability limitation section, which includes a forum selection clause for the state of Georgia, states that the agreement will be governed by the state's laws and mentions the possibility of legal action several times. Thiele Kaolin has also pointed out that ERM was required to hold professional and pollution insurance, which would have been unnecessary if the contract barred lawsuits.

In June 2022, Thiele Kaolin sued ERM for breach of contract, alleging that the environmental consultant failed to identify multiple instances of stormwater discharges, erosion, and other environmental problems at a large mining and mineral processing complex around Sandersville, Georgia. Thiele Kaolin claims that they had to pay $800,000 to rectify these environmental issues, which ERM failed to identify in their assessment in 2021.

In response, ERM filed a motion to dismiss the case in January 2023, claiming that Thiele Kaolin was acting in bad faith and that they were not responsible for the damages claimed. ERM also counterclaimed that Thiele Kaolin was entitled to attorney fees because they violated the contract by bringing the complaint.

However, Thiele Kaolin argues that ERM had an independent legal duty to exercise reasonable professionalism in their work and that the liability limitations in the contract do not shield ERM from professional negligence claims. The mining company also states that, since they were allowed to sue ERM under the contract, they did not breach the agreement, and therefore, ERM cannot make a counterclaim for attorney fees and their suit should be thrown out.

Investigative reporter for the USA Herald, Samuel Lopez, states that this case raises important questions about the role of environmental consultants and their obligations to assess and identify environmental problems at industrial sites. The outcome of this case could set a significant precedent for future environmental assessments and the responsibilities of environmental consultants.