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The settlement represents an important first step in the massive litigation over the alleged fraudulent cleanup by TetraTech of the Hunters Point Naval Shipyard
by Lee Houskeeper
San Francisco – The U.S. District Court granted approval this week to a $6.3 million settlement reached with Lennar and FivePoint on behalf of current and former homeowners in the San Francisco Shipyard. The suit brought by Cotchett, Pitre & McCarthy and co-counsel alleged that the development of the Hunters Point Naval Shipyard (HPNS) has been plagued by scandal due to the alleged fraudulent cleanup of toxins, including radioactive material by Tetra Tech.
The settlement is with Lennar and FivePoint, as the developers of the community – and is the first step in helping residents of the community. It is the first of the settlements with the litigation to continue against the main defendant Tetra Tech. In an order dated March 28, 2022, the Court states:
The proposed allocation is fair and reasonable and treats class members equitably relative to each other. The payouts will be substantial, ranging from hundreds of dollars to tens of thousands.
The order soundly rejected Tetra Tech’s attacks on the settlement agreement. According to the order, “The Tetra Tech defendants’ objection is not well taken.”
“Shipyard homeowners should take a moment to celebrate this victory,” declared Linda Parker Pennington, plaintiff, community activist and entrepreneur. “However,” she cautioned, “justice will not be done until all claims are resolved, including those of the surrounding community.
“In 2000,” Parker Pennington continued, “San Francisco voters approved Proposition P by wide margins demanding a full cleanup of the former Navy base to the most protective standards, those for unrestricted residential release, with no barriers or land-use restrictions. Twenty-two years later, the cleanup is riddled with allegations of fraud, Tetra Tech supervisors have gone to prison, the site is not yet proven to be free from toxic waste and those in power have pivoted to rely on barriers and restrictions – the very things that residents said were unacceptable. We must do better; our community needs the help of all residents to once again take a stand against corrupt practices.”
“The battle is just beginning – this case is part of the largest environmental fraud litigation in the country’s history. At their core, the cases are about environmental racism.”
Theo Ellington, director of Homeless Initiatives and Community Development at The Salvation Army, said: “I am a lifelong resident of District 10. My wife and I chose to be among the early purchasers in the SF Shipyard. We made this choice because we wanted to support our community.
“As we celebrate this victory, we are mindful that the fight for our community continues. We are grateful for the thousands of community members who are litigating in order to hold TetraTech and others responsible.”
The homeowners’ attorneys weighed in on the progress so far and the hard road ahead. Joe Cotchett of Cotchett, Pitre & McCarthy explained: “The battle is just beginning – this case is part of the largest environmental fraud litigation in the country’s history. At their core, the cases are about environmental racism.
“Southeast San Francisco carries a tremendous environmental burden – it is the most polluted part of the city and has been for generations. There are two types of “cover-ups’” at HPNS – first, you have the political cover-up, and then you have the physical coverup. Politicians keep touting their latest grand design for the area – whether it is mega-housing or the ill-fated plan for a stadium – while engaging in a physical coverup of the contaminated soil, advocating for caps and barriers instead of actual cleanup of the pollution.”
“We started this case in July 2018; the settlement with Lennar and FivePoint took over a year of negotiations,” added Anne Marie Murphy, also of Cotchett, Pitre & McCarthy. “The TetraTech scandal, as described in our case and related cases brought by the Hunters Point residents, police officers and whistleblowers, really rocked the City – with this settlement done, we can be laser-focused in proceeding with the case against TetraTech.”
“This early, partial settlement for the residents of the Shipyard will get some real money in our clients’ pockets,” said Duffy Magilligan, also of Cotchett, Pitre & McCarthy, “but the settlement does not make people whole. As alleged in the complaint, the most culpable party is TetraTech.
“TetraTech employees falsified the cleanup of soil; Tetra Tech is the one with supervising employees that have gone to prison. TetraTech did not want this settlement to happen. It ran to court to challenge the settlement – it lost.”
Under the terms of the settlement, checks will automatically be issued to class members upon expiration of the appeals period.
Cotchett, Pitre & McCarthy engages exclusively in litigation and trials and has earned a national reputation for its dedication to prosecuting or defending socially just and economic fraud actions. To learn more about the firm, visit www.cpmlegal.com. Read the complaint in this case: https://www.cpmlegal.com/news-Shipyard-Homeowners-Win-Court-Approval-of-6_3-Million-Dollar-Settlement-With-Lennar-and-FivePoint.
Contact journalist Lee Houskeeper of San Francisco Stories at NewsService@aol.com.
