A federal judge has ruled that Lee Mueller — whose business owned and operated the Edenville Dam in Michigan that failed in 2020, causing a massive flood — is on the hook to pay $119,825,000 in damages.
On Monday, the U.S. District Court for the Western District of Michigan issued the monetary judgment against Mueller.
“The dam’s ownership completely disregarded imminent threats to the safety and integrity of the dam, and as the State clearly demonstrated before the Court, Lee Meuller and his business were responsible for the disaster that struck Edenville and other area communities,” Attorney General Dana Nessel said in a statement. “This nearly $120 million judgment is important, both as a measure of accountability to the community Mueller devastated and as a deterrent to other owners of critical infrastructure.”
The May 19, 2020 dam failure caused a flood that damaged some 2,500 homes and businesses. In October, the Court ruled that the State had “brought sufficient evidence to show that Defendants knew of its dam’s vulnerability.”
A bombshell report by Bridge Michigan found that Mueller, a Las Vegas-based architect, and his cousin — both heirs to a fortune linked to the Boy Scouts — purchased four hydroelectric dams near Midland as a tax shelter to avoid paying $600,000 to the IRS. Through his company Boyce Hydro Power LLC, Mueller repeatedly clashed with state and federal regulators, who raised concerns about the dams’ structural integrity dating back to 1993.
One neighbor told Bridge that Mueller “hates government, he hates paying taxes, and nothing makes him happier than when he can stick his finger in the eye of government.”
Mueller was also accused of harassing homeowners who lived near the dam, even allegedly ramming his car into a pick-up truck belonging to people who parked on his property to go fishing.
Governor Gretchen Whitmer applauded the judgment.
“In 2020, after historic flooding and dam failures, we made a promise to the community to do whatever it takes to make them whole again and hold bad actors accountable for the devastating damage,” Whitmer said in a statement. “It was incredible to see neighbors helping each other with food and shelter, contractors working quickly to repair roads and bridges, and the legislature coming together to secure $200 million to rebuild the dams.” Whitmer added, “I want to thank Attorney General Nessel for leading this years-long effort to bring justice on behalf of the thousands of Michiganders who’ve suffered in the aftermath of the dam failure. In tough times, we come together as Michiganders to support each other.”
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