Judge OKs Payment of $3.5 Million to 391 Over Mass Cremations

A judge on Friday approved the payment of $3.5 million to almost 400 people who say a Costa Mesa crematory desecrated the remains of loved ones.

The action by Orange County Superior Court Judge John L. Flynn Jr. means that checks for about $9,500 for each of 391 people could be prepared as soon as today, according to lawyers in the case.

A plaintiffs’ attorney successfully argued that it would be unfair to make distraught families--some members of which have died since the lengthy case began--wait another year or more for compensation.

Early distribution of the money is unusual because Flynn must still approve an overall settlement next year. Without such approval, Harbor Lawn Memorial Park Inc. and its insurers have the right to demand repayment.

Flynn’s decision Friday to approve the first payment came over objections from lawyer Sally North, who said she will file an appeal, probably on Monday. North argued that Friday’s ruling would be unfair to another group of plaintiffs who would not receive as much money.

The payment approved Friday is the first installment on $14 million that Harbor Lawn and insurers have agreed to pay to settle a tangle of lawsuits alleging illegal mass cremations and loss of ashes.

Tustin attorney Betty J. McMullen, who represents most of the plaintiffs, applauded Flynn’s decision.

“One of the major hurdles to an overall settlement has been passed,” McMullen said.

A total of 22 of her clients have died during the 4-year-old lawsuit, McMullen said. She told Flynn that it would be unfair to make many of her elderly clients wait another year for relief.

Harbor Lawn agreed to the deal last March, but the critical first round of payments was held up for months because of squabbles among plaintiffs’ lawyers, Harbor Lawn’s bankruptcy and legal opposition by others.

Defendants not involved in Friday’s decision include about a dozen mortuaries that purchased cremation services from Harbor Lawn, the Neptune Society of Orange County, which arranged cremations there, and a number of employees of the firms.

The $3.5 million benefits only the 391 persons who had filed lawsuits by April 21, 1986.

All other plaintiffs, including 100 who have filed lawsuits since that date--plus an estimated 11,500 other Harbor Lawn customers between 1978 and 1985, whom North represents--would share in an additional $10.5 million. Harbor Lawn will add that amount to the pot if and when the entire settlement is formally approved by Flynn. Hearings on that portion of the settlement are scheduled to begin in January.

The amount each person will receive depends on the lawyers’ share of the payments. Several persons attending the court session Friday said one-third of the settlement will be kept by their attorneys.

Anita Arthofer of Orange said she was obligated to her lawyer for one-third of the money she receives, plus 10% that will go to Walter C. Goode, a private investigator involved in assembling the case against Harbor Lawn.

Despite Flynn’s ruling, Arthofer said she did not have “the least idea” of how, when and if she would collect the first installment.

Flynn named a special master, a court-appointed watchdog, earlier this year to administer the $3.5 million.