$10 million Terminix settlement rejected by judge

A plea agreement by Terminix to pay $10 million to resolve allegations it illegally sprayed a toxic pesticide that sickened and nearly killed a Delaware family vacationing in the U.S. Virgin Islands continues to move forward, despite a federal judge rejecting a portion of the agreement.

In March, Terminix admitted to using a pesticide called methyl bromide at 14 locations – including at the Sirenusa condominium resort in St. John where Steve Esmond, then-head of Tatnall's middle school; his wife, Dr. Theresa Divine; and their two sons – were vacationing in 2015, the U.S. Justice Department said.

But last month, a federal judge rejected the proposed financial settlement saying it was not appropriate.

"The court indicated that it had some concerns with the plea agreement," wrote Curtis V. Gómez, judge for the District Court of the Virgin Islands. "Indeed, given the facts and circumstances of this case, the court is not satisfied that the proposed plea agreement reflects an appropriate balancing of, among other things, the relevant factors that underpin the assessment and distribution of monetary sanctions."

Gómez, who did not give an indication of the financial penalties he could impose, gave defendants an opportunity to withdraw their guilty pleas. As of Wednesday, they had not done so. The sentencing is scheduled for August 25.

James R. Wedeking, an Terminix attorney involved in the litigation, referred comment to the pest control company's spokesman, Jay Robinson, who did not comment because the litigation was still ongoing. A spokeswoman for the U.S. Attorney General's Office for the District of the Virgin Islands said she could not comment on what Gómez would do.

In a plea agreement, Terminix and its U.S. Virgin Islands counterpart agreed to pay $8 million in fines, $1 million for a community service project in the U.S. Virgin Islands and $1 million in restitution to the EPA for response and cleanup costs at the St. John resort.

The company also agreed to "make good faith efforts to resolve past and future medical expenses for the family through separate civil proceedings" while the company is on probation for three years, the Justice Department said in March.

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The plea was entered the same day a criminal lawsuit was filed by the U.S. Department of Justice in March.

The pesticide, which is odorless and can severely damage the central nervous and respiratory systems, has been banned for indoor use by the Environmental Protection Agency since 1984.

A Terminix worker, however, sprayed the pesticide in the condo below where the Esmonds were staying for eight nights. The family fell ill two days later. Months later the governor of the U.S. Virgin Islands said Esmond and his sons were in serious to critical condition and had suffered neurological damage.

An update on their current conditions was not immediately available Wednesday.

Contact Esteban Parra at (302) 324-2299, eparra@delawareonline.com or Twitter @eparra3.