Lead paint settlement talks fail

Settlement discussions tied to nearly two decades of public nuisance litigation to resolve lead paint manufacturers' liability for knowingly marketing and selling toxic material have fallen through.

A day after Democratic lawmakers introduced legislation Tuesday that would require paint manufacturers to pay $475 million in remediation funds to counties across California, contingent on the parties reaching a settlement, both sides called it quits.

"What we put forward was a sincere effort to bring all parties to the table and to offer a statewide solution that would get money into the hands of families to remediate their homes and protect their children," Assemblymembers Tim Grayson, D-Concord, Monique Limón, D-Santa Barbara, and state Sen. Bob Hertzberg, D-Van Nuys, said in a statement.

"Unfortunately, an agreement was not reached and we will not be moving forward with legislation at this time," they said.

The legislation was contingent on the parties reaching a settlement by Oct. 15.

The development was unexpected after Democratic lawmakers agreed to drop a series of bills last month that would make it easier to find manufacturers liable in future lead paint litigation in exchange for ConAgra Brands Inc. and Sherwin-Williams Co. withdrawing from the ballot the Healthy Homes & Schools Bond Act of 2018, an initiative which would have absolved them from hundreds of millions of dollars in liability.

The initiative would have called on the state to sell $2 billion in bonds to fund lead paint cleanup.

"We believe our state leaders, not the courts, should address the problems created by deteriorated lead paint in poorly maintained housing through a statewide program in which all former lead paint manufactures would contribute," said paint manufacturers' spokesperson Tiffany Moffatt.

The paint manufacturers have appealed the case to the U.S. Supreme Court.

Moffatt did not comment on whether paint manufacturers will revive the Healthy Homes and Schools Bond Act initiative.

ConAgra, Sherwin-Williams and NL Industries are still on the hook for $409 million owed to 10 cities and counties for lead paint abatement. County of Santa Clara v. Atlantic Richfield Co., CV-788657 (Santa Clara Super. Ct., filed March 23, 2000).

The judge originally awarded $1.15 billion, but the figure was reduced on appeal. Homes built from 1951 to 1980 did not qualify, the court found.

Attorneys for the paint manufacturers appealed the decision to the U.S. Supreme Court because of their concern that the ruling maintained lead paint as a public nuisance, according Lee-Ann Tratten, political director of the Consumer Attorneys of California.

NL Industries, formerly known as the National Lead Company, reached an agreement with the jurisdictions to resolve its liability in the suit for $60.2 million in May, but a Santa Clara County Superior Court judge has yet to approve the offer.

"ConAgra and Sherwin-Williams are looking for the Legislature to help them escape from a significant portion of judgment against them in our case," said Greta S. Hansen, who helped lead Santa Clara County's lead paint case. "We are pleased those efforts did not provide the bail out they were seeking."