Facts

The United States filed a lawsuit against Kernan Construction Co. and Bundy & Sons Logging in relation to a forest fire that burned national forest land.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that the fire cost more than $4.6 million to suppress and damaged environmental resources such as habitat for sensitive species. Plaintiff contended that defendants' employees started the fire when they negligently dragged their unsecured heavy logging equipment along the highway, which caused sparks. The fire burned 1,608 acres of National Forest System lands.

DEFENDANTS' CONTENTIONS: Defendants denied the contentions.

Result

Defendants agreed to pay $9 million to settle the lawsuit. Kernan will pay $6 million while Bundy & Sons will pay $3 million. In addition, the district court granted summary judgment for the United States on count five of the complaint and declared all of California Health & Safety Code 13009.2 unconstitutional because it discriminates against the U.S. by limiting damages the U.S. may recover in a wildfire case.