GKN Aerospace and Orange County District Attorney Todd Spitzer have reached a $125 million settlement agreement in a civil case stemming from a chemical tank incident in Garden Grove in May. The incident prompted the evacuation of approximately 50,000 Orange County residents.
The stipulated agreement, along with the civil complaint, was filed in Orange County Superior Court on October 12, according to an Oct. 12 news release from District Attorney Spitzer’s office. While both parties have agreed to the payout, the settlement requires approval by an Orange County Superior Court judge before it can be finalized.
The total $125 million settlement encompasses several components. It includes a $100 million claims program for residents and businesses affected by the hazardous materials incident, a program GKN had previously committed to in August. Additionally, GKN will pay nearly $8.5 million to cover the costs of emergency services that responded to the incident and an additional $15 million in civil penalties.
Beyond financial restitution, GKN is also slated to pay $1.4 million for an outside organization to oversee its operations for seven years. This oversight includes implementing a “robust safety and monitoring plan” for the duration.
The District Attorney’s news release noted that the agreement marks a significant step in recouping millions of dollars in taxpayer funds expended by entities such as the County of Orange, the Orange County Fire Authority, the cities of Garden Grove, Cypress, Stanton, Westminster, and Anaheim, as well as the United States Environmental Protection Agency and the South Coast Air Quality Management District.
The original incident occurred over Memorial Day weekend when a chemical tank at the GKN Aerospace facility in Garden Grove experienced dangerously high pressure. Fire officials at the time had anticipated a potential leak or explosion, leading to the widespread evacuation of residents in Garden Grove, Stanton, and surrounding cities. The tank was eventually stabilized, and all evacuation orders were lifted on May 26.
The $100 million claims program is intended to reimburse an estimated 13,000 to 17,000 affected households for various expenses incurred during the Memorial Day weekend evacuation, including hotel stays, meals, transport, and lost wages. This claims program, initially announced to open in October, is now dependent on court approval of the settlement.
In an Oct. 12 press release, GKN stated that it has completed the necessary preparatory work to launch the claims program. The company expects the program to open within days of judicial approval of the agreement. GKN plans to host an event on October 27 to provide residents with more information about the claims program, though additional details regarding this event are not yet available. The company had also promised to hold a town hall as part of its claims program, which has not yet occurred.
Several class action lawsuits related to the hazardous materials incident remain ongoing against GKN Aerospace, according to the company.
