Lawsuit claims Impact Plastics' negligence in flood cost lives

The family of one of six employees killed in Hurricane Helene-related flash flooding at Impact Plastics Inc. in Tennessee is suing the company, alleging that negligence and delayed evacuations cost workers their lives.

Alexa Peterson brought the $25 million lawsuit Oct. 14 in Unicoi County, Tenn., on behalf of her father, Johnny Wayne Peterson, against both the company and CEO Gerald O'Connor.

The lawsuit said the injection molding company, which sat in an industrial park a few dozen yards from the Nolichucky River in a federal and state flood plain, ignored warnings and did not have an emergency plan to communicate with employees.

The lawsuit called the deaths "entirely preventable," and said Peterson and other employees were swept away in the early afternoon Sept. 27 as some of them tried to cling to a nearby semi-tractor trailer bed to escape rapidly rising waters brought by the hurricane.

"While most businesses in the area shut down to protect their employees, Impact Plastics and Mr. O'Connor chose profit," the lawsuit said. "They had no emergency action plan, despite the factory being located in a federally-designated flood plain. They ignored every warning, putting lives in danger to fill an order."

Peterson, 55, had worked for Impact Plastics for about 35 years, the family said.

A statement from the law firm representing Peterson's family, Litson PLLC in Nashville, Tenn., said the company failed to take proper action.

"Based on information we've uncovered, including accounts from surviving employees, we believe this tragedy could have been avoided," Litson said. "Impact Plastics was aware of the flood risks, and while employees requested permission to leave, the company failed to act."

O'Connor put out a video statement Oct. 4 saying that employees had enough time to escape, and he expressed condolences for the families of the dead workers.

The founder of the 37-year-old company said that based on a review he ordered, employees were directed to leave the plant within minutes of the facility losing power, at 10:39 a.m., and no later than 10:50 a.m.

"Employees were told to leave the plant at least 45 minutes before the gigantic force of the flood hit the industrial park. There was time to escape. Employees were not told at any time that they would be fired," he said.

The lawsuit offers a detailed account of the morning of Sept. 27 at the injection molding company and includes text messages and images it said Peterson sent to his daughter and father. Some were sent as Peterson tried, unsuccessfully, to ride out the flood waters from the bed of a nearby semi-truck.

The lawsuit said the company required employees to report to work at 7 a.m. that day to complete orders, although it said another company, Foam Products Corp., located 0.4 miles away on the same road, had closed Sept. 26 and Sept. 27.

It said it was first weather-related closure in Foam Products' 15-year history. The lawsuit said all public buildings in Unicoi County were closed Sept. 27, as were the schools.

As heavy rains and winds continued that morning, employees at Impact that morning were receiving flash flood alerts on their cell phones, including at 8:50 a.m. and again at 9:14 a.m., urging people to find high ground, the lawsuit said.

"Multiple Impact Plastics employees were greatly distressed that they were not allowed to leave and that there was no plan for the dangerously developing weather," the lawsuit said. "They asked whether they could leave, and they were not given permission to do so."

It said the Unicoi County Hospital, just over 1 mile from the Impact plant, was told by local government officials at 9:38 a.m. to begin emergency evacuations.

"Around 10:30 a.m., the Impact Plastics building lost power. Employees began to panic and fear for their lives," the lawsuit said.

O'Connor's message said that company executives were the last employees to leave the building at 11:35 a.m., after they did a walkthrough of the facility.

He said when employees were dismissed, there was about six inches of water in the parking lot and that the service drive appeared passable. His message also said five company employees were rescued by a National Guard helicopter.

O'Connor said that "to our knowledge no one perished while on company property."

The Peterson family lawsuit said the truck trailer that Peterson was on before he was swept away was off Impact property.

The Tennessee Bureau of Investigation and the Tennessee Occupational Safety and Health Administration have both opened investigations in the deaths.

The lawsuit said flooding in the parking lot prevented employees from safely operating their vehicles and it said company executives "failed to release employees from work."

The lawsuit said Peterson's daughter texted him at 10:51 a.m. to ask if the company was shutting down, and he responded that "they better."

The lawsuit said that by 11:35 a.m., "O'Connor and other senior management had stealthily exited the building out of the back door."

The suit stated Peterson texted his father at 11:12 a.m. that he couldn't get out. Around that time, he began trying to help other employees still in the factory, texting his daughter pictures of a break room that was underwater, the lawsuit said.

"At approximately 11:42 a.m., Johnny texted his daughter again that he was back inside of the building and trapped. He texted her 'can't get out' and that 'it rose so fast.' " the lawsuit said.

By about 12:13 p.m., it said he had made it to the semi-trailer, which was located off Impact property, where he called his father for less than a minute, before calling him again at 12:44 p.m.

It said that just before 1 p.m., Peterson texted his father video from the trailer, showing rushing flood waters. The lawsuit said that at that time, "the walls of building were beginning to cave."

The last message he texted to Alexa, at 1:17 p.m., said "I love you allllll," followed by a message to his father at 1:27 p.m., the last text Peterson sent to anyone, the lawsuit said.

"Shortly after sending these texts, Johnny was swept away by the overwhelming flood waters and drowned," the lawsuit said. "His body was recovered by a search and rescue team off Impact Plastics property days later."

The lawsuit said 11 workers at Impact were swept away in the waters and that six are confirmed to have died.