Report: Judge Halts Chemours, DuPont Arbitration

According to a report by the Associated Press, a judge has halted the arbitration between Chemours and DuPont temporarily. The judge, said the media outlet, chose to stop the case at this point at the request of Chemours as he weighs the arguments in DuPont’s dismissal motion.

In 2017, DuPont and Chemours paid out $670.7 million to settle several lawsuits related to the leak of PFOA, used to make Teflon. The chemical has been linked to cancer and other diseases.

Chemours filed suit against DuPont in early 2019, noting that DuPont did not properly disclose the cost of environmental liabilities the company would face due to the PFAS family of chemicals. Within the PFAS chemical family is PFOA, which is used on non-stick cookware, among other items.

According to DuPont, the lawsuit must be dismissed due to the separation agreement mandate that any additional legal disputes arising from the 2015 company spinoff must be arbitrated privately. Chemours, however, has argued that the arbitration agreement is invalid.

The judge ruled Thursday, December 19, that if Chemours is correct, allowing the arbitration to proceed would force Chemours to submit to an arbitration absent a contractual obligation to do so, which he said would amount to irreparable harm to Chemours, the AP reported.