Sherwin-Williams, NL Industries and ConAgra Foods have been found liable for removing lead-based paint from the interiors of thousands of homes throughout California to the tune of $1.1 billion, thanks to a ruling by Santa Clara County Superior Court.
The San Jose Mercury News reported that Judge James Kleinberg awarded the funds to 10 California cities and counties that sued former and current paint companies for promoting the sale of lead-based paints before it was banned in 1978. Lead poisoning can result in kidney damage, hearing problems and other issues, while in children it can slow growth and cause behavioral and attention disorders.
In a tentative ruling the judge ordered the three corporations to deposit $1.1 billion in a state-administered fund, which will be used for inspections and the removal or reduction of lead-based paint on the inside walls of homes in the state. The court dismissed cases against two other defendants, DuPont Co. and Atlantic-Richfield Co., owned by BP Plc, the Los Angeles Times reported.
The Mercury News said L.A. County could receive the biggest portion of the funds ($605M), followed by Santa Clara and Alameda counties ($99M each), San Mateo County ($55M) and the rest dispersed among San Francisco, Solano, Monterey, San Diego and Ventura counties.
ConAgra Foods became a defendant in the case because the company is an alleged successor to W. P. Fuller Co., a lead paint and pigment manufacturer that was owned and operated by the Beatrice Company until 1967. Beatrice was acquired by ConAgra Foods in June 1990.
ConAgra Company said in a statement that it disagrees with the ruling and added that the company should not have been part of the lawsuit.
“ConAgra Foods is absolutely not an appropriate defendant and was never in the paint business. As a food maker who employs thousands of people in California, we believe this case is an unfortunate example of extreme overreach,” the company said.
Sherwin-Williams was also taken to task last year by the FTC, which claimed the paint company misled consumers into believing its paints didn’t contain Volatile Organic Compounds (VOCs) — carbon-containing compounds that easily evaporate at room temperatures, some of which can be harmful to human health and the environment. Under a settlement, the FTC required S-W to stop claiming that their Dutch Boy Refresh and Pure Performance interior paints, respectively, contain zero volatile organic compounds. Right around the time of the action, the FTC had released its updated Green Guides, including criteria for claims that could confusingly assert that products are "free of" or contain “none” or “zero” of specific ingredients.
In March, Ethisphere named Sherwin-Williams one of the World's Most Ethical Companies.
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Published Dec 23, 2013 4pm EST / 1pm PST / 9pm GMT / 10pm CET