Californian court to hear chromium lawsuits against PG&E
Date: 10-Jan-02
Country: USA
The claims seeking $500 million for alleged cancers and other illnesses from the
PG&E Corp. subsidiary have links to a 1993 environmental case that inspired the
2000 Academy Award-winning movie "Erin Brockovich."
U.S. Bankruptcy Court Judge Dennis Montali in a ruling issued late Tuesday said
the claims belong in state court because they involve state law and there is no
legal reason to transfer them to federal court, where PG&E wanted them dismissed.
The claims are pending in 15 state lawsuits involving the chemical chromium six,
a possible carcinogen, at the utility's natural gas pipeline stations in the
California towns of Hinkley, Kettleman and Topock.
The suits allege that people drank water contaminated by chromium six, a chemical
PG&E used in the 1950s and 1960s to inhibit rust in cooling systems at the
plants. The chemical was discarded in unlined ponds at the stations.
PG&E has acknowledged it used the chemical but denied it caused any illnesses.
In an earlier case, 650 people won $333 million from the company to settle damage
suits.
PG&E has estimated its potential liability in the latest claims at $160 million.
The utility filed for bankruptcy protection in April 2001 after taking on
billions of dollars in debt as a result of California's 1996 deregulation law.
