A jury has awarded $8.8 million to two dozen residents of Carson, California, who suffered health issues due to exposure to hydrogen sulfide gas. The gas was released following a fire in September 2021 that ignited pallets of hand sanitizer at a distribution center, leading to significant contamination of the Dominguez Channel.
Residents reported a persistent “rotten egg” odor for months, along with symptoms such as headaches, breathing difficulties, and nausea. Attorney Kelly W. Weil, representing the plaintiffs, stated, “The suffering of the Carson community was denied and downplayed for far too long. This month’s long trial exposed the defendants’ brazen and reckless creation of one of the largest environmental disasters in the history of Los Angeles.”
The jury’s decision includes $2.8 million in compensatory damages for the 24 affected residents and an additional $6 million in punitive damages, reflecting the malicious conduct of the defendants. This verdict marks the first of potentially many, with an estimated 13,750 plaintiffs still awaiting their hearings. Legal experts predict that total damages could exceed $1 billion if similar awards are granted.
The lawsuit was filed against multiple parties, including Liberty Property LP, the property owner, and its parent company, Prologis, along with tenants Day to Day Imports Inc. and Virgin Scent Inc., which operates under the brand ArtNaturals. Prologis has not commented on the ruling, and representatives from Day to Day and Virgin Scent were unavailable for comment.
In response to the jury’s verdict, Carson Mayor Lula Davis-Holmes emphasized the importance of accountability, stating, “While no verdict can undo the harm experienced by affected families, this outcome sends an important message: communities should not bear the costs of industrial misconduct.” She underscored the need for industries to take responsibility for their actions and the consequences they impose on residents.
The fire that triggered this environmental crisis started at a distribution center on Avalon Boulevard and rapidly spread, engulfing an entire city block within hours. Hundreds of firefighters battled the blaze, which consumed stacks of pallets and boxes filled with highly flammable ethanol-based hand sanitizer.
Shortly after the fire, the Food and Drug Administration discovered that one of the hand sanitizers produced by the same company contained “unacceptable levels of benzene, acetaldehyde, and acetal contaminants,” warning consumers against its use due to potential cancer risks.
The lawsuit alleges that the companies involved failed to properly manage the aftermath of the fire, allowing “soggy, charred debris” to enter storm drains, which eventually discharged into the Dominguez Channel. This channel, approximately 15.7 miles long, flows through Hawthorne, Carson, and Torrance before emptying into the San Pedro Bay.
The contamination led to stagnant water conditions that depleted oxygen levels, resulting in significant vegetation die-off and an increase in hydrogen sulfide gas. According to court filings, the South Coast Air Quality Management District reported that hydrogen sulfide levels reached 230 times higher than state nuisance standards.
The foul odor affected residents across the South Bay for over ten weeks as local officials, including county and city leaders, attempted to trace its origin. Initially, the smell was attributed to decaying vegetation, but investigations eventually confirmed that the runoff from the fire was the primary source.
Los Angeles County has spent an estimated $54 million—with some estimates reaching as high as $143 million—to eliminate the odor. The county has also provided reimbursements to residents for air filters, purifiers, and temporary relocations. In January 2022, the county filed a lawsuit against the property owners and tenants to recover these costs, with that case still pending.
In a related development, a judge imposed over $10 million in penalties against Day to Day Imports and Virgin Scent for not obtaining necessary stormwater permits and for the discharge of pollutants. While Prologis and Liberty Property were also found liable, they were not subjected to penalties as they had already invested $10 million in cleanup efforts.
As the community of Carson continues to grapple with the aftermath of this environmental disaster, the recent jury verdict serves as both a financial relief and a reminder of the ongoing struggle for accountability in industrial practices.
