Facts

Union Pacific Railroad owned land in Santa Rosa, which it leased to scrapyard operators. In 2000, drinking water wells were found to be contaminated with chlorinated solvents. 32 individuals who lived and worked in an area approximately half a mile away from the Union Pacific property, sued several defendants, including Union Pacific Railroad, the city of Santa Rosa, the county of Sonoma, and the state of California for the contamination. Plaintiffs also sued Optical Coating Laboratory Inc. (OCLI), now a subsidiary of JDS Uniphase, claiming it was also a source of the contamination. Prior to trial, the city of Santa Rosa settled for $1.5 million, the county of Sonoma settled for $750,000, and the landlord of a neighborhood dry cleaner settled for $400,000.

PLAINTIFF'S CONTENTIONS:
Plaintiffs argued that the Union Pacific land had been leased to scrapyard operators for about 20 years, during which time chlorinated solvents were released into soil and ground water. Plaintiffs also contended that OCLI improperly disposed of solvents on the property during the 1960's and 1970's. Plaintiffs argued that groundwater carried the contaminants from the Union Pacific property to the residents' wells and that sewers and ditches transported the toxins from Union Pacific property to the plaintiffs' wells. Plaintiffs offered a "groundwater flow model" showing the toxins flow path on a predicted timeline.

DEFENDANT'S CONTENTIONS:
Union Pacific argued that the types of chemicals found in plaintiffs' well water were not the same as the ones associated with its property and therefore must have come from another source. Union Pacific argued that the contamination was caused by two neighborhood dry cleaners that improperly disposed of the same type of chemicals found in plaintiffs' wells in the mid-1990s. Union Pacific argued that plaintiffs' "flow model" produced unreliable and inaccurate conclusions based on flawed assumptions. Union Pacific also argued that tests of wells in plaintiffs' area done in the early 1990s showed no evidence of contamination. Union Pacific argued that, if the contamination was caused by chemicals migrating from its property, there would have been evidence of contamination at the time of those tests.

Settlement Discussions

Plaintiffs made a $13 million demand to OCLI and no demand to Union Pacific, but indicated they would only potentially settle with Union Pacific for an amount equal to three times the demand to OCLI. OCLI offered $75,000; Union Pacific made no offer.

Damages

Plaintiffs sought approximately $600 million in damages, including punitive damages.

Injuries

Plaintiffs sought recovery for birth defects, auto-immune injuries, and neurological and psychological impairments, as well as medical monitoring and property damage.

Result

Defense verdict.

Deliberation

two hours

Poll

11-1 (defense)

Length

4.5 months