Orange County DA reaches $125 million settlement with GKN Aerospace after Garden Grove hazmat crisis in May

Orange County District Attorney Todd Spitzer has reached a $125 million settlement with GKN Aerospace after the company's Garden Grove facility was at the center of a chemical crisis that forced nearly 50,000 to evacuate their homes in May. 

According to a news release from the DA's Office, the settlement was submitted to an Orange County Superior Court judge for approval or modification and includes the previously agreed-upon $100 million claims program for evacuees, $15 million in civil penalties and $8.47 million to reimburse emergency response and abatement costs, a "robust safety plan" and multi-year monitoring program. 

The settlement comes nearly half a year after a chemical tank containing methyl methacrylate became compromised and was at risk of a "catastrophic explosion," Orange County Fire Authority officials said at the time. The emergency led to evacuation orders for tens of thousands of residents in Garden Grove and five other surrounding communities, lasting for nearly a week before residents were able to return home. 

"The stipulated agreement marks an important milestone in the District Attorney's Office's efforts to recoup millions of dollars in taxpayer funds spent responding to the Memorial Day weekend hazmat incident," the DA's Office statement said. 'It also includes full repayment of $500,000 in discretionary funds that Orange County First District Supervisor Janet Nguyen expanded to aid those affected by this emergency."

Spitzer's office said that the cities of Garden Grove, Cypress, Stanton, Westminster and Anaheim were included in the emergency, and that local agencies including OCFA, the U.S. Environmental Protection Agency and South Coast Air Quality Management District were called to assist with the incident. 

According to Spitzer, the agreement includes the $100 million claims program for the more than 50,000 residents who were forced to evacuate from their homes for five days. The program will be administered by a third-party program that is not affiliated with GKN and will allow residents and business owners who had to evacuate to be reimbursed for expenses including hotel stays, loss of use and per diem compensation for meals, transportation and loss of wages. 

The "robust safety plan" will also include seven years of injunction monitoring, the DA's Office said. The plan will require an outside expert to maintain oversight of GKN operations to ensure that "all applicable laws and regulations are followed." The $1.4 million cost for monitoring will be paid by GKN, Spitzer said. 

Spitzer previously closed a criminal investigation into GKN, which he launched as the incident unfolded back in May. The probe found no criminal wrongdoing, at which point Spitzer shifted to negotiating towards a civil disposition with GKN and announced the claims program. Spitzer maintained that GKN was fully cooperative with their investigation.

While the DA's investigation was closed, there still has not been word on what caused a team of FBI investigators to swarm the property in June to conduct a search warrant.

Last month, dozens of community members and city leaders demanded accountabliity and full transparency from GKN officials before they returned to full operation for the first time since the May incident. 

After the settlement was announced on Monday, GKN said that the company would be hosting a community event on October 27 so residents could interact with officials and learn more about the claims program.