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.
