COLUMBUS, Ohio — In a unanimous decision that shields Ohio taxpayers from a multi-million dollar liability, the Ohio Supreme Court ruled today that the state is not required to compensate a wastewater company for a temporary shutdown sparked by seismic activity.
The ruling is a significant victory for Attorney General Dave Yost, whose office represented the Ohio Department of Natural Resources (ODNR) in the long-running legal battle.
Safety Over Compensation
The case, State ex rel. AWMS Water Solutions LLC v. Mertz, originated in Trumbull County in 2014. At that time, ODNR ordered the suspension of operations at two Class II brine injection wells after they were scientifically linked to a series of earthquakes in the area.
AWMS Water Solutions filed suit seeking $13.2 million in damages, claiming that the state’s suspension constituted a “taking” of their property by depriving them of the economic use of their wells.
A “Victory for Taxpayers”
The state’s high court disagreed, reversing an earlier ruling by the 11th District Court of Appeals. The justices emphasized that the state’s primary duty to protect the public outweighs a corporation’s claim for compensation—especially when the company was aware of the inherent risks of injection well operations.
“The court’s decision is a victory for Ohio taxpayers, who don’t have to open their pocketbooks every time the state enforces the law,” said Attorney General Yost following the announcement.
The ruling sets a firm precedent: the state can enforce safety laws and halt operations that pose a risk to the public without being held financially liable for a business’s lost revenue.
