Lockheed, Residents Settle for $5 Million

More than 300 Burbank residents will accept a $5-million settlement from Lockheed Martin Corp., their lawyer said Tuesday, ending four years of litigation by people who say they were sickened by the aerospace giant’s release of toxic chemicals into the air, soil and ground water.

But the settlement, which could average as little as $3,000 per claim after legal costs and lawyers’ fees, was criticized as paltry in comparison with the $60 million that Lockheed Martin paid in 1996 to settle similar claims from 1,357 residents.

“Everyone would have liked a bigger settlement--no question about it,” conceded Thomas Foley, the lead plaintiffs’ lawyer. “But there is a potential risk” that the cases might be thrown out on legal issues before trial.

Lockheed Martin is not admitting guilt. The company, which once said it would refuse to settle, now says that doing so is cheaper than paying trial costs.

“The bottom line is that we were able to prove there was no cause-and-effect relationship” between Lockheed Martin’s chemical releases and the plaintiffs’ injuries, spokeswoman Gail E. Rymer said, referring to an earlier court ruling that dismissed 140 of the more than 300 residents’ claims.

The settlement, however, will include those 140 cases, which are on appeal, and about 200 other claims awaiting trial in state court.

Foley declined to say how much each plaintiff would get after court costs and attorneys’ fees. According to figures provided by one plaintiff, however, the settlement would average about $3,000 per family.

The settlement will be divided among the plaintiffs based on a number of factors, Foley said, including how long they lived in Burbank, how close they lived to Lockheed Martin’s factories and their specific illnesses.

Lynnell Murray-Madrid, 44, and her sister, Erin Baker, 43, said they voted against taking the money, but they were outvoted by the other plaintiffs, and the settlement was accepted for all.

“I think the settlement is a ridiculously low amount of money,” Murray-Madrid said.