Judge Considering Settlement of McColl Suit With Chevron

The proposed $400,000 settlement with Chevron Corp. of a lawsuit by 78 families north of Fullerton’s McColl dump was taken under consideration Thursday by Orange County Superior Court Judge Phillip A. Petty. The agreement is being protested by one of the other defendants in the case.

Under the settlement, the families would be paid the lump sum by Chevron (formerly Standard Oil Co. of California) and a subsidiary, Chevron USA. In exchange, Chevron, which owned property north of the dump until it sold it to a developer in 1976, would be dropped from the suit, which is still being pursued against a dozen other defendants.

Attorneys for the residents said their clients have agreed to use the money to finance health and soil studies, to show how they have been affected by the proximity of the World War II hazardous waste site.

One of the defendants, Soil and Plant Laboratories Inc. of Santa Ana, argued Thursday that the settlement is “inequitable” because Chevron has a greater role in the dispute than the amount reflects. Attorney Douglas B. Thayer of Santa Ana said the laboratory had “minuscule involvement” and performed $34 worth of work, conducting two soil analyses, in 1977 but will be forced to assume a disproportionate share of liability if the residents win their suit. Further, Thayer argued, the money from Chevron will merely finance the lawsuit against the remaining defendants.

The residents’ attorney, Jeffrey Matz of Encino, responded that the proposed settlement was reached in good faith and that the plaintiffs are entitled to do whatever they want with the money.