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Restaurant Patrons Can Make Claim in $800,000 Settlement

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Case ID: 4378 | Miscellaneous | 08/08/2005

More than 9,000 people who received shots to ward off hepatitis A after an outbreak at a Chi-Chi's restaurant can make a claim in an $800,000 class-action settlement.

The federal judge overseeing Chi-Chi's bankruptcy has approved notice to the 9,489 people who got immune globulin shots from the Pennsylvania Department of Health after the outbreak was publicized in early November 2003.

More than 600 people were sickened, and four eventually died, from eating tainted green onions served at the Beaver County, Pennsylvania Chi-Chi's. Health officials urged shots for family members of people who became ill, as well as those who ate in the restaurant in the weeks leading up to the outbreak.

The settlement doesn't cover anybody who filed a lawsuit over damages or death. More than 550 people, and all four families of those who died, also filed claims for out-of-pocket medical expenses and/or for more serious damages. All but a handful of those cases - including all four wrongful death suits - have settled for a total of about $40 million, according to Chi-Chi's attorney.

The $800,000 class-action settlement is separate and meant to compensate those whose damages were limited to the inconvenience of having to get a shot. Attorneys in Seattle, Washington represent the class.

"The settlement money will be divided equally between everyone who files a timely claim form, so the value of the claims depends on how many are made. For example, if 3,000 claims are filed, each will be worth about $266.00." said the Washington Attorney that represents the class.

People can also opt out of the settlement by the court-imposed deadline, and would then be free to sue Chi-Chi's for damages on their own. The judge must approve the final claims group at the fairness hearing.

Chi-Chi's has sued Castellini Co. of Wilder, Ky., accusing the firm of supplying the tainted onions, which the Food and Drug Administration traced to several Mexican farms.

Chi-Chi's had filed for bankruptcy shortly before the outbreak, citing cash flow problems.


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