Elkhart » Residents living near a recycling facility have filed a lawsuit alleging that dust from the plant has led many of them to seek treatment for asthma, nosebleeds and breathing difficulties.

About 100 people who live near the VIM Recycling plant in Elkhart filed suit in Elkhart Circuit Court with the help of the public interest law firm Legal Environmental Aid Foundation.

The suit alleges the plant failed to properly dispose of 18,000 tons of wood chips that contain formaldehyde, a preservative used in construction materials that can cause breathing problems. It also is thought to cause cancer.

"The horrible stench from VIM wakes my husband and I up in the middle of the night," said Annette Freel, a plaintiff in the lawsuit. "The stench enters our home through the venting, fireplace, dryer vents and anywhere it can enter. We both have trouble breathing because of this."

The lawsuit ultimately seeks to shut the facility down, said Kim Ferraro, a Valparaiso attorney representing the group.

Tom Holt, a spokesman for VIM, said state health officials surveyed the area in December 2007 and did not find higher instances of asthma, nosebleeds or other health conditions.