Mural Group Claims Victory : Art: Shell Oil and East Los Streetscapers reach an out-of-court agreement over a mural bulldozed without warning.

The East Los Streetscapers muralist group has reached an out-of-court settlement in its 1988 suit against Shell Oil Co. in conjunction with the bulldozed mural “Ancient Energies.”

Although the amount of the surprise settlement, reached during a private conference Thursday, was to remain confidential under the terms of the agreement, the artists called it a “victory.”

“This was a big hurdle, and I’m really happy with the amount,” said David Botello, who painted the mural along with Wayne Healy and George Yepes. The trial was scheduled to begin Aug. 3.

The 1,200-square-foot mural, commissioned by Shell Oil for about $4,000, was painted in 1980 on a wall adjoining a Boyle Heights service station at the corner of Soto and 4th streets. But the majority of it was bulldozed--without notice to the artists--in 1988 to make way for a parking lot.

The Streetscapers had sued for loss of the value of the mural, damages to their reputation as artists, emotional distress and attorney’s fees.

The “Ancient Energies” case set a major precedent last year when the California appellate and supreme courts used it to rule that murals were protected under the California Art Preservation Act of 1980, which requires owners of artworks to give artists 30 days notice to remove their works before they are destroyed.

Shell spokesperson Holly Hutchins said the company is pleased that the matter has been resolved, but added that the law has yet to be tested since no case has gone to trial.