Facts

Gabriel Espinosa filed a private party enforcement/representative lawsuit against CWI, Inc. and JPC Products, LLC, under Proposition 65 for selling and distributing Trash-Ease trash bag holders that contained Diisononyl phthalate (DINP) to consumers in California without warning. CWI, Inc. acquired the holders from JPC Products, LLC.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants' Trash-Ease trash bag holders contained DINP, which was a harmful chemical known to cause cancer. The sale of products containing such chemicals was prohibited under Proposition 65 regulations. Plaintiff contended that defendants knew of the toxic chemical and its potential side effects on consumers, but failed to provide consumers with adequate warnings on the potential cancer causing properties of DINP. Plaintiff further contended that defendants' failure to warn consumers could result in injury that will continue if defendants were not enjoined from manufacturing and distributing its trash bag holders in the state without warning.

DEFENDANTS' CONTENTIONS: Defendant CWI, Inc. denied the contentions.

Result

The case settled for $19,000, including $17,000 for attorney fees and $2,000 for penalties. CWI, Inc. was also mandated not distribute, offer for sale or sell any product that is not reformulated unless it is labeled with a clear Proposition 65 exposure warning.