Facts

Defendant Safety-Kleen Systems Inc. is one of the largest suppliers of petroleum-based solvents and parts washers to automotive repair and auto body shops, service stations, parts manufacturers and other businesses. The City Attorney's Office of Los Angeles, joining with the District Attorney for the County of Orange, District Attorney for the County of Riverside, District Attorney for the County of Los Angeles, and District Attorney for the County of San Bernardino, in partnership with the South Coast Management Air Quality District ("AQMD") filed a lawsuit against Safety-Kleen Systems Inc., alleging that the company intentionally sold and supplied solvents containing illegally high levels of smog-forming ingredients to nearly 100 businesses in Southern California.

PLAINTIFF'S CONTENTIONS:
The People contended that Safety-Kleen Systems Inc. unlawfully sold and distributed tens of thousands of gallons of prohibited solvents to customers throughout the Southern California Air Basin. The People also contended that Safety-Kleen Systems Inc. violated the state's Unfair Business Practices law, by knowingly selling to business non-compliant solvents containing with more than 30 times the smog-forming ingredients allowed under AQMD rules.

Result

The parties reached a total settlement of $15 million, including $12 million in civil penalties under to the state's Unfair Business Practices law to the Los Angeles City Attorney's Office, and the District Attorney's Offices of Orange, Riverside, Los Angeles, and San Bernardino Counties, and $3 million in air quality penalties and costs of investigation to AQMD. Safety-Kleen Systems Inc is also subject to a permanent injunction barring future violations of AQMD rules and is required to performing additional record keeping, reporting and employee training to ensure compliance with AQMD regulations.