Metro Site Inc. v. SK Battery America, Inc. et al

Case Background

Metro Site Inc., a waste and recycling company in Commerce, Georgia, filed a trespass lawsuit against SK Battery America. The lawsuit followed a devastating fire at Metro Site’s material recovery facility, allegedly caused by the improper disposal of lithium-ion batteries. SK Battery America, an electric vehicle battery manufacturer with a factory in north Georgia, was named as the Defendant. The case was filed in Jackson County State Court in Georgia. [Case number: 23SV271]

Cause

On July 14, 2023, a fire destroyed Metro Site Inc.’s recycling facility in Commerce. The blaze started after lithium-ion battery scraps exploded. Metro Site, which was not authorized to process batteries, did not know they were included in a recent waste drop-off. Investigators later traced the batteries back to SK Battery, a subsidiary of South Korea’s SK Group. Following the incident, Metro Site filed a lawsuit against SK Battery.

Damages

The Plaintiff pursued compensation for the damage caused by the destruction of its facility.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Metro Site Inc.
    • Counsel for Plaintiff(s): Gerald Cody | Gus McDonald | Jackson McDonald | Bo Hatchett | Allyn Stockton
  • Defendant(s): SK Battery America, Inc.
    • Counsel for Defendant(s): Elizabeth C. “Kate” Helm | Dustin Marlowe | Avery G. Carter | Steven H. Campbell

Claims

The Plaintiff’s lawsuit included claims of trespass, breach of contract, and nuisance. The legal team argued that SK Battery America’s improper disposal of defective lithium-ion batteries and lax practices led to explosive waste at Metro Site’s facility. They alleged that SK Battery America knew Metro Site was not licensed or equipped to handle hazardous materials like lithium-ion batteries.

The Plaintiff contended that the Defendant’s negligence significantly contributed to the destructive fire. Investigators found multiple lithium-ion batteries in the debris, all from SK Battery America. An incident report confirmed that the fire originated from lithium-ion batteries mixed with waste.

The Plaintiff further argued that SK Battery America was aware of the dangers its batteries posed. The Defendant had sent batteries to Metro Site at least twelve times, despite knowing they had caused previous fires there. Even after acknowledging the issue, the Defendant failed to prevent further disposal, leading to the devastating fire.

The Plaintiff’s attorneys accused SK Battery America of destroying key evidence during litigation. The court ruled that deleting video footage from inside the plant constituted evidence spoliation.

To support their case, the Plaintiff’s legal team presented expert findings that the shipped batteries underwent thermal runaway, causing the fire. A post-fire inspection revealed over 600 burnt and charred SK batteries at the site.

The Plaintiff’s attorneys also planned to introduce evidence of recurring fires at the SK Battery America plant. An open records search of 911 service calls reportedly revealed numerous internal fires at the factory where the lithium-ion batteries were manufactured. The Plaintiff’s team argued that this pattern of incidents highlighted safety issues that contributed to the fire at Metro Site.

Defense

In the pretrial brief, the defense argued that the Plaintiff shared responsibility for the catastrophic loss. They emphasized that the Plaintiff, as an experienced recycling business, understood the serious risks of fires, including potential injuries, fatalities, and property damage. The defense highlighted that the Plaintiff had an emergency safety plan designed to prevent injuries, fatalities, and property damage from fire hazards. Despite acknowledging these risks, the Plaintiff had not installed a sprinkler or fire suppression system at its facility. This, the defense claimed, demonstrated a failure to address known fire hazards adequately.

In the pretrial order, the defense admitted that SK Battery America had previously sent battery cells to Metro Site. However, they argued that the company took these incidents seriously and implemented internal measures to address the issue. The defense highlighted policy revisions and additional employee training as steps taken to prevent future occurrences.

Following a December 22, 2022, incident where battery cells delivered by Roll-Off Systems caused a fire at Metro Site, SK Battery America updated its policies. The company’s logistics and module teams received revised instructions to prevent further battery cell deliveries to Metro Site. According to the defense, these measures, issued by Jinsu Kim, effectively addressed the problem.

The defense further noted that after implementing the updated policies, no incidents occurred between December 2022 and July 14, 2023. During this seven-month period, Roll-Off Systems transported approximately 2,700 loads of waste from SK Battery America to Metro Site without issue. The defense argued this demonstrated the effectiveness of the company’s corrective actions

Settlement

Metro Site Inc. and SK Battery America reached a $31 million settlement less than two weeks before the scheduled trial.

Remarks After Settlement

Jackson McDonald, representing Metro Site, stated the settlement was driven by the Plaintiff’s demand, which included a public disclosure clause to highlight SK Battery’s alleged misconduct and deter similar actions by corporations. The agreement avoided a second spoliation hearing and ended one of several legal disputes surrounding the fire.

McDonald noted the case presented unique challenges, requiring the application of modern environmental regulations to traditional legal concepts like trespass and nuisance. He predicted increased litigation against manufacturers related to lithium-ion batteries and electric vehicle technology, emphasizing the significant risks posed by emerging industries.

An SK Battery spokesperson confirmed the settlement and highlighted procedural improvements to prevent similar incidents. The company maintained that it had not intentionally sent hazardous materials to Metro Site or destroyed evidence. SK Battery expressed its commitment to community safety and its desire to move beyond the dispute.

Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com

Press Release:

Waste Today