ELR Citation: ELR 21327
No(s). 90-3122-AAH (C.D. Cal. May 19, 1992)

In one of the first suits the federal government filed for natural resource damages under §107 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the court enters a proposed consent decree requiring two corporate defendants to pay $12 million to the United States and California for contamination of the ocean and harbors in the Los Angeles area, and injuries to marine mammals and birds. Over the objections of nonsettling defendants, and in light of CERCLA's overriding goal of achieving prompt and early settlement, the court holds that the proposed settlement—$12 million over the next four years in three equal payments of $4 million, in exchange for covenants not to sue and releases from any claims for contribution—is procedurally and substantively fair. Regarding procedural aspects of the agreement, the court relies upon the assurances of the special master, who was directly involved in all settlement activities, that all negotiations were in good faith and held at arm's-length. The court holds that the settlement reasonably takes into account the relative toxicity of polychlorinated biphenyls compared to DDT.

[A previous decision in this litigation is published at 22 ELR 21333. Related pleadings are digested at ELR Pend. Lit. 66108.]

Counsel for Plaintiffs
Gerald F. George
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Counsel for Defendants
Robert M. Dell
Latham & Watkins
505 Montgomery St., Ste. 1900, San Francisco CA 94111
(415) 391-0600