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Phoenix, Arizona, Residents Reach $9.5+ Million Settlement in 2000 Warehouse Fire Action

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Case ID: 2909 | Environmental | 08/19/2004

The parties have reached a tentative $9.5+ million settlement in a series of related actions filed against occupants of a Phoenix, Arizona, warehouse that caught fire in August 2000 on behalf of neighborhood residents who alleged that the fire spewed chemical-laced smoke through their homes and sickened many with illnesses that linger today. Eligible settlement participants should contact the class attorneys for more information.

An explosion at the warehouse ignited the fire the night of August 2, 2000, sending flames into the air that were visible from Mesa to Glendale. The noxious fumes and a fear of further explosions prompted the evacuation of hundreds of nearby residents. The warehouses contained a variety of chemicals, including sulfuric, nitric and hydrochloric acids, oxides of nitrogen and sulfur, cyanide and vinyl chloride. The fire leveled the 90,000-square-foot building and caused more than $100 million in damage, making it one of the costliest blazes in the city's history. In the weeks and months after the fire, residents of the neighborhood began to experience symptoms of asthma, various eye problems and rashes. Other illnesses were also blamed on the toxic smoke.

Named as defendants in the action are Central Garden and Pet Company; Arch Chemicals, Inc.; Olin Corporation, Inc.; Clearon Corporation, Inc.; the city of Phoenix; Abrigo Fire Protection, Inc.; Naumann/Hobbs Material Handling, Inc.; C.I.M. Machinery, Inc.; Greif Brothers Corporation; and U.S. Container Corporation. Though the city of Phoenix will not contribute money to the settlement, it has agreed to inspect all similar warehouses in the neighborhood near 38th Street and Broadway Road where the fire occurred, and keep residents informed of any future plans to store hazardous or flammable materials in the area.

The settlement will resolve more than 1,500 personal injury actions against the defendants, along with class actions that claimed residents were the victims of more than two decades of environmental racism. Those actions alleged that city authorities rezoned land and offered incentives to attract industrial businesses to target areas whose residents are primarily black and Hispanic. A separate $25 million class-action suit alleged the area was a dumping ground for toxic polluters because of its racial makeup.

The settlement will set aside some of the money to be used to fund a medical monitoring program to test people for future ailments.


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