Facts

In 1967, defendant Whittaker Corp. began operating a 996-acre munitions plant in Santa Clarita. The plant manufactured and stored rockets, sidewinder missiles, dynamite and explosives. The defendant shut down the plant approximately 20 years later.

In 1997, perchlorate was found in a number of wells in Santa Clarita Valley. Plaintiffs Castaic Lake Water Agency, Newhall County Water District, Valencia Water Co. and Santa Clarita Water Co. filed suit against defendant and others, alleging environmental damages. They also claimed violations of the federal Comprehensive Environmental Response, Compensation and Liability Act and the state Hazardous Substance Account Act, in addition to negligence, negligence per se, trespass and nuisance. According to plaintiffs, defendants polluted the area with perchlorate, which was contaminating the Santa Clarita Valley water supply.

In 2003, the plaintiffs' motion for summary judgment as to liability was granted. The parties also reached an interim settlement whereby defendants spent $9.5 million to create a remediation plan. Defendants also filed a counterclaim, for which they recovered $325,000.

Damages

The plaintiffs sought reimbursement damages, including $9.5 million already spent, to cover cleanup and maintenance costs.

Result

The parties reached a settlement whereby plaintiffs would conduct the cleanup, and the funding provided by defendants would be used to build replacement wells, pipeline and a treatment plant to remove perchlorate and to cover ongoing operations and maintenance expenses of the project for up to 30 years. Under the settlement terms, plaintiffs were also required to seek grants to help pay for monitoring, treatment and other costs not covered by the settlement.