More than 300 Burbank residents will accept a $5 million settlement from Lockheed Martin Corp., their lawyer said Tuesday, ending four years of litigation by residents who say they got sick from the aerospace giant's release of toxic chemicals into the air, soil and ground water.
But the settlement--which could average as little as $3,000 per claim after legal costs and lawyer fees--was criticized as paltry in comparison to the $60 million Lockheed Martin paid in 1996 to settle similar claims from 1,357 Burbank residents.
"Everyone would have liked a bigger settlement, no question about it," conceded Thomas Foley, the plaintiffs' lead attorney. "But there is a potential risk" the cases might be thrown out on legal issues before the trial begins.
In deciding whether to settle, the plaintiffs had to consider not only the legal risks but also a long-standing threat by Lockheed Martin to try to recover the millions of dollars the company has spent in defense costs from the plaintiffs, if they lose.
"The reason that people are settling, it's not because it's a great settlement, but people are afraid of losing their homes," said Lynnell Murray-Madrid, one of 16 plaintiffs who voted against accepting the settlement.
Despite its offer, Lockheed Martin is not admitting liability. The company, which once said it would refuse to settle the case, now says settling is cheaper than paying trial costs.
"The bottom line is that we were able to prove there was no cause-and-effect relationship" between Lockheed Martin's chemical releases and the plaintiffs' injuries, spokeswoman Gail E. Rymer said, referring to an earlier court ruling that dismissed 140 of the more than 300 claims by residents.
The settlement, however, will include those 140 cases (which are on appeal) and about 200 other claims awaiting trial in state court.
Rymer declined further comment, saying the settlement must still be approved by Los Angeles County Superior Court Judge Carl J. West in Burbank. West is scheduled to review the agreement Nov. 10.
"Until this is entered officially in court, and until we have heard what Mr. Foley and the judge have to say, we really need to reserve comment," Rymer said. "It's not really a done deal."
In addition to the $60 million payout to residents, Lockheed Martin has paid former workers $33 million to settle claims they got sick from exposure to toxic chemicals the company used during decades of defense and aerospace manufacturing. The company has never admitted liability, however.
