What Happened in the Hinkley Groundwater Contamination Case?
Plaintiffs and defendants agreed to avoid a jury trial and settle for binding arbitration.
The plaintiffs’ legal team argued that PG&E knew about the contamination, did nothing to warn citizens until it was too late, and even attempted to cover up knowledge of the effects of the contamination.
PG&E argued that there was no direct link between the contamination and the illnesses, and that the levels of contaminants in the water was not harmful.
In the end, PG&E agreed to settle for $333 million, clean up the contamination, and stop use of chromium 6.
Did Anderson v. PG&E Change Anything?
While the Brockovich-PG&E case didn’t go to court, and wasn’t heard by a jury, the substantial settlement amount or $333 million showed that large companies could be held liable for their actions, even decades after the contamination, setting a legal precedent for environmental liability claims. In addition, California put stricter state EPA guidelines on carcinogenic chemicals in drinking water.
What Made the Hinkley Groundwater Contamination Case Unique?
The Hinkley Groundwater Case gained attention mostly because of Erin Brockovich. Brockovich was a single mother who had no legal training or a college degree. She took up interest in environmental law and was hired by Masry & Vititoe as a file clerk. While filing one day, she came across medical records of Hinkley residents. The story is inspiring to people, as it was clear that one person (Brockovich) was able to make a difference in hundreds of people’s lives by advocating for them and pushing to get results.
Additionally, the case resulted in a $333 million settlement from PG&E, along with other, undisclosed stipulations. This was the highest settlement amount for a direct-action lawsuit of its time.