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Litigation
9 Months Ended
Mar. 31, 2016
Litigation [Abstract]  
Litigation

7.  LITIGATION

 

Indiana Civil Litigation – In December,  2013, the Company entered into a confidential agreement to settle the Indiana Civil Litigation. The Company paid $6.25  million to Plaintiffs to settle the matter without admission of wrongdoing. The Company continues to believe that it did not cause or contribute to the contamination.    This settlement was recorded as “litigation settlement costs” in the Consolidated Statements of Income.



The Company continues to pursue the recovery of additional defense and settlement costs from insurance carriers. Based on policy language and jurisdiction, insurance coverage is in question.  The Iowa District Court dismissed litigation filed by the Company’s insurance carriers in Iowa after the Iowa Court of Appeals found that Indiana law applied to the insurance policies in question and the Iowa Supreme Court denied further review.  The dismissal was then appealed by the insurance carriers to the Iowa Supreme Court, which referred the appeal to the Iowa Court of Appeals in March 2016. Concurrently, coverage litigation is proceeding against the insurance carriers in Indiana.



During the quarter ended March 31, 2016 and 2015, the Company received $2.0 million and $0.3 million and during the nine months ended received $2.3 million and $0.3 million, respectively, for recovery of litigation settlement costs from insurers. These amounts are recorded as “litigation settlement reimbursements” in the Consolidated Statements of Income.



During the quarter ended March 31, 2016, the Company recorded $0.2 million of legal expenses incurred pursuing insurance coverage which was offset by reimbursements of $0.8 million from insurers. During the quarter ended March 31, 2015, the Company recorded $0.2 million of legal expenses incurred pursuing insurance coverage which was offset by reimbursements of $0.2 million from insurers.    During the nine months ended March 31, 2016, the Company recorded $0.4 million of legal expenses which was offset by reimbursements of $0.8 million from insurers. During the nine months ended March 31, 2015, the Company recorded $0.4 million of legal expenses which was offset by reimbursements of $0.2 million from insurers. These expenses and reimbursements are included in “selling, general and administrative (SG&A) expense in the Consolidated Statements of Income.



On March 11, 2016, the Company received a General Notice Letter for the Lane Street Groundwater Superfund Site located in Elkhart, Indiana from the United States Environmental Protection Agency (EPA). The EPA has determined that the Company may be responsible under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).  On April 11, 2016, the EPA issued their proposed clean-up plan for groundwater pollution and request for public comment. Public comment period is from April 11, 2016 to May 11, 2016. As of March 31, 2016, no liability was recorded in the Consolidated Balance Sheets because it is not possible to reasonably estimate the amount, if any, of remediation cost due to the early stages of determining the extent of environmental impact, allocation amount to the potentially responsible parties and remediation alternatives.



Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.