When Shell Oil Co.'s Kast Property Tank Farm in Carson was developed into the Carousel Tract of about 285 homes, residents were at first unaware they lived atop soil laced with carcinogenic toxins, including benzene and naphthalene, that seeped into the groundwater. After they found out in 2009, they retained Finnerty and his firm and sued in a massive toxic tort case that led to a $90 million settlement last year. In December, a state appellate panel affirmed the big payout over strong objections by Dole Food Co., another defendant, with claims against it still unresolved. Dole Food Co. v. Superior Court (Shell Oil Co.), B262044 (Cal. App. 2nd Dist., filed Feb. 19, 2015)
The settlement includes allocations for economic and noneconomic property damages, plus personal injury damages, Finnerty said.
"The other side has said there will be no further appeals, and the money has started flowing. That's the very good news," Finnerty said. "We're happy that the Court of Appeal has opened the door for these poor people of the Carousel neighborhood to move forward with the settlement with Shell, and we've been very disappointed that Dole has delayed the payment of these settlement monies for over a year now."
In separate proceedings before the California Regional Water Quality Control Board, Shell has agreed to spend more than $230 million to clean up the 50-acre site.
The next move will be to proceed to trial against Dole, Finnerty said, unless a settlement is reached with Dole and other developer defendants. Those groups argued that Shell's settlement amount was excessive, meaning they feared they could be required to pay an inflated sum themselves.
"This case touched a lot of people's lives," Finnerty said. "Residents were told by state water authorities that their children were not to be allowed to play in the dirt in their own yards. Some people moved out, but many were trapped. It's hard to sell your home when it sits on top of a mix of toxic chemicals."
He gave credit to his clients. "These homeowners did a real job of uniting and staying together. The settlement sounds like a lot of money, but mainly these people want the peace and quiet of their homes back."
- John Roemer
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