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PARRIS Law Firm Reaches Multi-Million Dollar Settlement Over Sun Valley Gas Leak

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After years of intense litigation, the PARRIS Law Firm has reached a settlement of $59,892,000.00 with the City of Los Angeles’ Department of Water & Power (LAWDP).

What Happened?

This settlement stems from a three-year ongoing gas leak at the Valley Generating Station in Sun Valley, California. Between 2017 and 2020, compressors at the Valley Generating Station had been continuously leaking methane. By 2020, it had become one of the top methane polluters in California.

Despite this ongoing leak, 1,699 days had passed before informing the nearby population, which LADWP’s General Manager reported that the people of Sun Valley has “to make somewhat of a sacrifice” by living so close to the station. This line of thinking guided LADWP’s decision to not inform the community or make adequate attempts to fix the leak.

Unfortunately, for the nearby residents, they had no idea they were being continuously exposed by this leak. They suffered nausea, dizziness, headaches, and rashes, leaving them confused about the cause. Residents in Sun Valley and the surrounding are uniquely vulnerable, and are often unable to purchase expensive air purifiers or relocate to a less toxic environment.

In August of 2020, the South Coast Air Quality Management District issued a Notice of Violation against LADWP “for failure to maintain compressors for natural gas fueled turbines in such a manner that ensures proper operation of the equipment.”

The Legal Battle

After filing the initial lawsuit, PARRIS Law Firm assisted the community in submitting nearly 1,300 Fact Sheets to prove the serious impacts of the gas leak, all of whom lived or worked around the Valley Generating Station.

PARRIS Law Firm also took the depositions of LAWDP’s most knowledgeable witnesses to discover the composition of the gas and the rate of the gas leakage. The testimony from these depositions demonstrated that the City never conducted any risk assessment of its own to determine where the wind would take the gas or what impact it had on nearby residents.

PARRIS Law Firm also collaborated with engineers, air modelers, and toxicologists to determine the degree of exposure experienced by the community. These experts also conducted a site inspection of the Valley Generating Station to calculate the leakage rate. While PARRIS attorneys worked to get answers for residents, LADWP and the City of Los Angeles resisted every step of the way.

Of the individuals who submitted a Fact Sheet, ten households were selected at random to proceed to an initial trial. However, rather than proceed with a protracted trial that would delay recovery even longer, the City of Los Angeles agreed to resolve the claims.

The Result

LADWP has agreed to pay up to $59,892,000.00 to settle all claims of victims of the Valley Generating Station gas leak who submitted a Fact Sheet.

At this time, only the total settlement amount has been approved by the City. Subject to certain conditions, the settlement money may be allocated among the plaintiffs who complied with the Court’s deadlines and in accordance with a protocol developed by neutral, independent allocators. This process will take time. Once it is completed, the plaintiffs will have an opportunity to review and approve the individual settlement offers in more detail.

"This remarkable settlement will bring much-needed relief and justice to these overlooked communities who were continuously poisoned for years. We are proud of the results and for holding the City accountable for this catastrophe," said R. Rex Parris. "Our litigation showed that LADWP put the Sun Valley community's health at risk, and we are grateful that the City is finally stepping up to provide residents with much-needed relief," said PARRIS attorney Patricia K. Oliver.

Our environmental law team is grateful that residents of Sun Valley and Pacoima are one step closer to finding closure.

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