$100 Million Claims Program Announced
GKN Aerospace has agreed to an up-to-$100 million claims program aimed at residents and businesses forced to evacuate during a chemical scare in Garden Grove, California, in May. The Orange County District Attorney’s Office announced the agreement on Monday, Aug. 24.
The program is designed to reimburse evacuees for expenses such as hotel stays, meals, transportation, and loss of wages. According to the district attorney’s office, the five-day evacuation impacted an estimated 13,000 to 17,000 households, with more than 50,000 residents forced to leave their homes over Memorial Day weekend.
The Incident
The evacuation was prompted when a pressurized chemical tank owned by GKN Aerospace began heating dangerously on May 21. The tank contained about 7,000 gallons of methyl methacrylate, a toxic chemical used to make plastics. Fire officials warned that the tank could explode or cause a major spill, leading to the massive evacuation. The company has since decommissioned the tank involved in the incident.
Details of the Program
Details of the claims program, including how residents and businesses can apply, have yet to be determined. The program will be administered by an independent third party unaffiliated with the company, according to the district attorney’s office. GKN said it expects people to be able to start submitting claims this fall, with payments for eligible claims to follow “swiftly thereafter.” The company said it would provide further details in coming weeks.
End of Criminal Investigation
The announcement of the claims agreement ends a criminal investigation that District Attorney Todd Spitzer had announced during the evacuations. Investigators conducted onsite inspections, reviews of plant records, and consultations with experts over the past few months. Ultimately, prosecutors opted to pursue a civil agreement with GKN rather than a criminal case.
“The community has an absolute expectation that businesses operating within their neighborhoods operate safely and lawfully,” Spitzer said in a statement. “I am pleased that GKN has been and continues to be responsive to any and all requests throughout this investigation.”
Ongoing Discussions
Discussions between GKN and the District Attorney’s Office over the full impact of the chemical scare are continuing, according to DA officials. The two sides are still discussing a comprehensive safety plan that could include independent monitoring of the Garden Grove facility. Prosecutors also said they are negotiating potential additional financial reimbursements for expenses incurred by first responders and emergency-services agencies who took part in the hazardous-material response.
Company Background
GKN Aerospace, based in the United Kingdom, is a major international manufacturer of airplane parts with plants in 12 countries. The Garden Grove plant manufactures the canopy for the F-35 fighter jet. Work at the plant has been halted; a possible resumption date of Sept. 28 has been mentioned, contingent on meeting safety standards.