May 1, 2022: Litigation Drama Between Endron and City of LA Drags On
Here is a recent article by the Los Angeles Tribune regarding the ongoing litigation drama between Endron and the City of Los Angeles, which has now dragged well into its second year.
LOS ANGELES, CA – A protracted legal battle continues between Los Angeles and oil titan Endron International has dragged on into its second year. The dispute started following the Skid Row warehouse explosion and the fallout from the failed clean-up efforts.
After stepping in to help control the disastrous chemical fire, Endron withdrew its assistance and launched a lawsuit against the city (+bbread 6/5, 6/6 and 6/7). The oil giant’s attorneys from the renowned Kilroy, Young & Lee law firm allege breach of contract and unfair competition, among other claims (see 10/2 and 10/2.1).
Over the past year, the proceedings have turned into a complex legal tug-of-war in the Los Angeles County Superior Court and the United States District Court for the Central District of California. The process, experts agree, is likely to drag on for at least another year or two.
“It’s a classic case of David versus Goliath,” says Harriet Kelson, a law professor at UCLA. “Except this time, Goliath is a cutthroat, multi-billion-dollar corporation with an army of top-tier lawyers. And David is the second largest city in America.”
Mayor Hiram Guardado of Los Angeles, once a beloved figure for his pragmatic leadership, faced an unceremonious downfall late last year when he was caught in a quid pro quo scandal involving land rights for public parks. The scandal was exposed after an anonymous leak of documents showing he had been quietly facilitating the acquisition of these lands by his son’s struggling real estate development firm, leading to accusations of political nepotism. Ironically, one of these parks was set to be named after his late wife, Michelle Darling, a passionate environmentalist and scion of one of Los Angeles’ wealthiest families. The bitter irony of this scandal has not only obliterated his chances of re-election in 2022 but has also muddled the city’s fight against Endron, with critics asserting that both parties have disregarded the public’s best interest for personal gain.
Initially, public sentiment seemed to be increasingly anti-Endron. Frequent protests and social media campaigns accused Endron of environmental negligence and corporate bullying. However, these voices struggled to cut through the noise of a tidal wave of dark money and favorably skewed local media coverage. A popular meme circulating social media early on encapsulated the public sentiment: It depicted a cartoon Endron oil rig wearing a superhero cape, attempting to mop up an oil spill with dollar bills, only to find that the bills are just spreading the mess further. The caption reads: “Endron’s idea of clean-up: First make a mess, then spread it around.”
Endron, for its part, maintained that it acted in good faith and accuses the city of LA of mishandling the situation. The corporation points to its successful intervention in a similar chemical fire incident in the Pacific Northwest as evidence of its commitment to the communities it operates within. Indeed, there is some evidence that Endron’s PR campaign has started to bear fruit, including a charm offensive aimed at some of its most ardent critics (+bbread 6/23).
It seems like more citizens than Mizhakwan Peltier (who could not be reached for comment) are willing to give Endron a second chance:
- A private security officer who prefers to remain anonymous said: “In all honesty, trying to keep the peace in Skid Row was like trying to keep the peace in a pit of vipers. It’s no wonder Endron had to pull us out, I mean, uh, pull their guys out. They aren’t equipped to handle that level of hostility, they’re trained for passing out water bottles and oil spills not urban combat with deranged junkies.”
- A viral video clip has been circulating on social media, featuring an impromptu stand-up comedy performance at a local club. The comedian (who has appeared in numerous mediocre streaming specials), jests: “So yeah, that’s all I got to say about Young Legend…or should I say, Young FUHRER. But where was I…oh yeah…they say Endron left Skid Row in the lurch, right? But have you seen Skid Row? I mean, if leaving that mess behind is a crime, then my ex-girlfriend should be serving a life sentence for leaving her wardrobe at my place! Am I right, fellas?”
- A local small business owner whose store was looted during the Skid Row unrest said, “Endron didn’t start the fire. They tried to put it out. It’s not their fault the hose was stolen before they could use it.”
- At a recent city council meeting, Council Member Chaquille Jefferson-Price gave a speech where he passionately argued that Skid Row’s woes were not due to systemic issues or industrial negligence, but rather a lack of “individual responsibility and work ethic.” He held up an Endron job application, proclaiming, “This here, this is the solution. Jobs. Not handouts.” There are many who believe that Jefferson-Price, who has since announced his candidacy for Mayor, is taking a hardline pro-Endron stance to help secure a mutually beneficial settlement post-election. He has been a vocal critic of Mayor Guardado’s legal fumblings from the very beginning.
The Councilmember might be onto something; the City of Los Angeles has found it challenging to fill the void left by Endron’s departure. No other company has taken up the mantle of cleaning up Skid Row, largely due to the fear of potential backlash and the looming shadow of Endron’s lawsuit. Meanwhile, the city has discouraged grassroots activists and locals from trying their own hand at cleanup, owing to the dangers and technical expertise required. So far, there is only one company that has tendered a serious bid for the contract (once litigation is resolved) – Wu Sun Pacific, and there are doubts that the Singapore-based venture tech company has anywhere near the resources or experience required for such an enormous operation.
What the future holds for this legal tug-of-war is uncertain. As the courtroom drama unfolds, the residents of Skid Row continue to bear the brunt of the tragic warehouse explosion, and the question of who will finally clean up their neighborhood remains unanswered.