by Chuck Sharman

In a letter dated September 10, 2025, attorneys for a group of more than 500 prisoners at Indiana’s Pendleton Correctional Facility announced a $2.4 million settlement of claims arising from an outbreak of Legionnaire’s disease in late 2021 and 2022 caused by contaminated water. All of them were left sickened. One prisoner died. Most of the payout will come from the state Department of Correction (DOC), except for $100,000 paid by its contracted medical provider, Centurion Health. The prisoner who shared copies of the agreements with PLN requested anonymity to protect his portion of the latter payout, which was confidential.

A bacterial pneumonia caused by Legionella bacteria, Legionnaire’s disease is spread by inhaling droplets or mist from contaminated water. Legionella is a commonly found type of bacteria, and most people who are exposed do not get sick. But with repeated and prolonged exposure, as well as for those with risk factors—including advanced age, a history of smoking, chronic lung disease and compromised immune function—the bacteria can cause a serious lung infection that is potentially fatal. The disease was named after a 1976 outbreak during an American Legion convention in Philadelphia.

The disease outbreak at Pendleton was declared on December 1, 2021, when five prisoners were hospitalized for treatment. Three had tested positive for the disease, but the other two who tested negative were experiencing similar symptoms, so they were treated as if they had possibly been exposed. All of them lived in two housing units at the maximum-security lockup, where lead Plaintiffs Joshua Jackson and Edward C. Cook had begun experiencing symptoms the previous September. Michael Bennett, one of those who tested positive, died two days later.

The disease was eventually traced to a “biofilm” coating the prison’s ancient water pipes, which had not been maintained or tested for years. Evidence of Legionella bacteria was also found on plumbing fixtures used by prisoners, including water faucets and shower heads.

Over 60 prisoners who experienced symptoms filed grievances over their illness, appealing the eventual denials and, after exhausting appeals, filing suit in the U.S. District Court for the Southern District of Indiana. Those claims were eventually consolidated into one master case, and counsel was recruited for the prisoners from attorney Gregory L. Laker with CohenMalad LLP in Indianapolis.

The Plaintiffs made claims under 42 U.S.C. § 1983 for violations of their Eighth Amendment rights by Defendants’ failure to protect them from the disease. The Town of Ingalls, which provides water to the prison, and its water system manager, Aqua Indiana, were dismissed from the suit on September 26, 2024. Even though they admitted that they had ceased testing and maintaining the water pipes to the prison several years earlier, the district court determined that Aqua could not be held liable as a “state actor” for the prisoners’ injuries. The court added that the town could be held liable for its own actions under Monell v. Dep’t of Soc. Servs., 436 U.S. 658 (1978), but not for the actions of its “employees or other agents.” That the Town admitted to failing to maintain and test its water system, the district court said, did not rise to the level of a “custom or policy” that would establish Monell liability, so it was also dismissed from the suit. See: Jackson v. Bryant, 2024 U.S. Dist. LEXIS 174311 (S.D. Ind.).

Settlement Agreement Reached

Meanwhile, the Plaintiffs were engaged in settlement negotiations with the DOC and Centurion. Under the agreement that they eventually reached, a total of $2.4 million was allocated to the Plaintiffs, including $598,274.70 in costs and fees to their attorneys. Another $200,000 was designated for payment to Bennett’s Estate in settlement of its wrongful death claim. See: Bennett v. Reagle, USDC (S.D. Ind.), Case No. 1:23-cv-00523. The remainder was divided among three tiers of prisoners, with payments to commence as soon as 475 of them had signed off on the settlement agreement.

Most of the Plaintiff prisoners—495 in all—were assigned to Tier I under the settlement, paying each $2,883.20 after deductions for attorneys costs and fees. Prisoners in this tier all suffered from symptoms of the disease but were either (a) denied testing or (b) tested negative (though they may have been treated with antibiotics by Centurion). Three prisoners in Tier II, who tested positive for the disease and were treated at the prison by Centurion staffers, each received a net payment of $7,350, after deductions for attorneys costs and fees. In the same way, a net payout of $11,100 was promised to each of four prisoners in Tier III, who tested positive for the disease and were hospitalized for treatment.

In addition to the payouts, the DOC also promised to replace the prison water pipes contaminated with Legionella bacteria and install improved filters on all shower heads. The prison agency further promised to conduct more frequent and thorough maintenance and testing of Pendleton’s water system. In addition, Centurion was obligated to put in place improved prisoner testing policies and procedures for Legionella.

The DOC has already installed new mixing valves that alert officials when the water system temperature falls within a range that is conducive to Legionella growth. A contract for the remaining redesign work has been awarded, but if funding for the improvements is not forthcoming from the state legislature during the 2026 session, the litigation may be re-opened. See: Jackson v. Holcomb, USDC (S.D. Ind.), Case No. 1:21-cv-03120. 

Additional sources: WFYI, WTHR

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