Case Study: Mediated Settlement of Property Damage Class Action

Represented a large manufacturing company in a federal, property damage class action involving several thousand residential properties south of Denver, along the Front Range of Colorado.  The plaintiff class alleged that groundwater under their properties was contaminated with a chlorinated solvent as well as other chemicals and that the alleged groundwater contamination caused vapor intrusion and other injuries to their properties.  The class initially asserted negligence, nuisance, trespass, unjust enrichment and strict liability claims.  The types of damages claimed included: loss of property value, loss of use and enjoyment of the property, annoyance and discomfort, and unjust enrichment damages for "storage" of materials in groundwater.  The case was vigorously litigated for over four years.  The court dismissed the strict liability claim under Rule 12(b)(6).  Other motions to narrow the case were filed and were pending when the parties reached a settlement in principle as the result of a judicial mediation process.  Following notice to the class and a fairness hearing, the court entered a judgment approving the class settlement in January 2007.  The settlement did not provide for any payments to class members, but offered class members still owning property in the class area an opportunity to request an indoor air test during a six month period immediately following entry of judgment.  The settlement also provided for payment of certain costs and attorneys fees incurred by the class. 

(Partners:  Gail Wurtzler and Adam Cohen)