LOS ANGELES (CN) - A state court judge looks set to approve a $90 million settlement with residents of a Carson neighborhood sitting on top of a sludge of petroleum waste, pending a final objection from the oil giant's developer co-defendant in the case.
Five years ago, residents of the Carousel neighborhood of Carson - 17 miles south of downtown L.A. - sued Shell Oil and real estate developer Barclay Hollander, with the support of high-profile environmental activist Erin Brockovich. Barclay is owned by multinational Dole Food Company.
The suit alleged the oil giant knew that hundreds of family homes would be built above three underground tanks when, in the late 1960s, it transferred part of the site to the developer.
In 2009, Shell discovered that oil and carcinogenic chemicals had leaked into soil beneath the residential area that 1,491 people call home.
On Thursday afternoon, Superior Court Judge William F. Highberger did not make a final ruling on Shell's motion for a good-faith determination of the settlement agreement.
But the judge looks set to reject Barclay Hollander's contention that it could be left holding the bag if the court approves the agreement.
Highberger said at the hearing that in order to "dot my Is and cross my Ts," he would allow the developer defendants to depose environmental attorney William E. Platt, who supported Shell's good-faith determination.
Barclay will then get to file one more opposition to Shell's motion. The oil company may then "file their last, best factual showing in support of grant of the motion," before Highberger rules on Jan. 30, a tentative order obtained by Courthouse News states.
Highberger noted in his order that the proposed settlement is "'in the ballpark' for the purposes of showing good faith," giving an indication of how he intends to rule.
According to the tentative order, the proposed settlement includes allocations for economic and noneconomic property damages, and economic and noneconomic personal injury damages.
The plaintiffs' lawyer, Tom Girardi, told Courthouse News shortly after the hearing that it was a "given" that the judge would approve the settlement.
"What judge out there is going to turn down that kind of money for these people?" Girardi said.
Still, the finer print of the oil giant's settlement has remained fuzzy. Late last year, Highberger agreed to issue an interim protective order that keeps the agreement under wraps, after Shell threatened to pull out unless the deal remained confidential.
Even though Shell also proposed a $146 million agreement to clean up the neighborhood this past November, some residents told Courthouse News on condition of anonymity that the firm Girardi Keese was pressuring them to sign waivers that absolve Shell of any liability.
After the hearing Girardi pushed back against the notion that his firm had used any underhand tactics.
"We know what we're doing," Girardi said. "And other than a handful of five or six, [the plaintiffs] are very happy. We get notes every day that appreciate our working so hard for them, the progress that we've made with respect to getting the place cleaned up - the progress we've made with respect to monetary compensation. All these people are the sweetest clients we've ever represented."
Girardi conceded that a few residents were unhappy with the settlement, but said that all of the plaintiffs had signed off on the deal.