Judge approves $125 million GKN settlement over Garden Grove chemical leak

An Orange County Superior Court judge on Monday approved a $125 million settlement with GKN Aerospace over a May chemical leak in Garden Grove that forced widespread evacuations, according to NBC Los Angeles. The agreement reserves up to $100 million for about 50,000 evacuated residents.

The agreement creates a path for eligible households and businesses to seek compensation for evacuation-related expenses and losses. It also requires seven years of monitoring, with independent oversight, following an emergency that displaced people in Garden Grove, all of Stanton and nearby communities.

The emergency began May 21 after a leak was detected at the plant at 12122 Western Ave., NBC Los Angeles reported. A chemical leak and overheated storage tanks raised fears of an explosion, prompting evacuations over Memorial Day weekend that lasted several days.

The leak involved the cooling system of a 34,000-gallon chemical storage tank. A crack in the damaged tank eventually released internal pressure and removed the explosion risk, according to the report. District Attorney Todd Spitzer said outside chemical safety experts helped investigate and GKN cooperated fully.

Eligible residents can claim lodging expenses of $300 a night for up to five nights, with allowances for up to $500 a night or additional nights in certain circumstances. Meal compensation is $50 per person daily for up to five days. Transportation payments are $20 per household daily for up to five days, or up to $50 daily with documented expenses, NBC Los Angeles reported.

Households can also seek $500 for loss of residential use without documentation beyond a completed application. Hourly employees can claim documented lost wages of up to $500 daily for a maximum of three working days. Businesses ordered to close during the evacuation can seek up to $5,000 daily in documented lost profits, according to the report.

The settlement includes $8,471,385.50 to reimburse first responders and $15 million in state-law penalties for consumer protection enforcement by the district attorney's office. GKN will pay $1.4 million for monitoring over seven years, including oversight by an independent expert, NBC Los Angeles reported.

GKN will announce when claims open and how to apply, according to NBC Los Angeles. Applicants may need supporting records, depending on the compensation they seek.