Diageo reacts to whiskey fungus lawsuit

Diageo has expressed “disappointment” over a US court’s decision to permit a lawsuit that accuses the drinks group of failing to control ethanol emissions at its warehouses in Louisville.

A lawsuit that accuses Diageo of not controlling its ethanol emissions in Louisville has been granted permission to proceed

As reported by The Courier-Journal, the Sixth Circuit Court of Appeals in Cincinnati has upheld a federal court’s ruling that Louisville residents can proceed with their lawsuit against UK drinks giant Diageo.

A number of local people have argued that Diageo’s warehouses create ethanol emissions – commonly known as “angel’s share” – which cause black fungus to grow on their homes.

Diageo, which produces Bulleit Bourbon in Louisville, initially argued that the Clean Air Act prohibited locals from suing under state or local nuisance laws, a claim which was rejected by the court.

A spokesperson for Diageo said: “We are disappointed with the court’s decision and we will continue to defend ourselves against these claims.”

The lawsuit has been spearheaded by US attorney William F. Murray since 2012, who has also pursued legal action against other whiskey distillers over claims their warehouses produce so-called “whiskey fungus”.

In 2012, Murray filed a class action lawsuit on behalf of a number of residents against Diageo Americas Supply, Brown-Forman and Heaven Hill.

At the time, the three drinks companies issued a joint statement, claiming that while they were “sympathetic” to the concerns of the plaintiffs, the black substance found on their buildings was the result of a “naturally occurring common mould” not related to whiskey maturation.

Shortly after the suit was filed, the Louisville Air Pollution Control District (APCD) issued two “notices of violation” to Diageo for allowing “the emission of an air pollutant” and failing to prevent the “strong objectionable odour” of alcohol.

Last year, the Kentucky Court of Appeals allowed Murray’s court battle against Brown-Forman and Heaven Hill to proceed and is now in front of the Kentucky Supreme Court.

The “whiskey fungus” is not thought to pose a problem to human health.