Allen Harim, wastewater company resolve legal battle

A legal dispute between Allen Harim Foods and Artesian Wastewater Management has been resolved.

Roy Graber Headshot
(Allen Harim)
(Allen Harim)

A legal dispute between Allen Harim Foods and Artesian Wastewater Management has been resolved.

A lawsuit, filed by Allen Harim Foods, claimed that Artesian wanted $1.42 million plus interest from the poultry company. The suit stated that if Allen Harim didn’t pay that amount by June 26, it must either shut down operations in Harbeson and Millsboro, both in Delaware, or dispose of its wastewater in Beaverdam Creek.

That would have been problematic, because Allen Harim has an agreement with the Delaware Department of Natural Resources and Environmental Control (DNREC) which restricts Allen Harim from discharging water into the creek. If the poultry processor violates that agreement, it would be subject to fines of up to $10,000 per day.  

Also, Allen Harim claimed in the lawsuit that it does not owe the money to Artesian.

Artesian informed Delaware Public Media that the two parties have since reached a legal agreement, a payment has been made and it is taking wastewater from Allen Harim.

“(There were) different interpretations of when commencement date of the take or pay arrangement occurred,” said David Spacht, CEO of Artesian Wastewater Management. “Both parties wanted clarity. Allen Harim filed lawsuit to basically get the clock running and since then we have settled it.”           

A contract was signed between Allen Harim and Artesian in 2017, after Allen Harim received multiple fines from the state for discharging wastewater into streams.

When that agreement was announced, it was stated that Artesian would construct a pipeline to route the treated wastewater from the Harbeson plant to Artesian’s Northern Sussex Water Recycling facility north of Milton, Delaware. From there, Artesian was to use it for spray irrigation on agricultural land.

Allen Harim Foods, which is headquartered in Millsboro, produced 7.6 million pounds of ready-to-cook chicken on a weekly basis in 2020.

Page 1 of 1576
Next Page