$21-Million Tentative Accord OKd in Mortuary Case

An Orange County Superior Court judge on Tuesday tentatively approved a $21-million settlement in a lawsuit against a Costa Mesa funeral home that allegedly mishandled the remains of hundreds of corpses.

More than 300 lawsuits have been filed against Harbor Lawn Memorial Park and firms that used its services for 12,000 cremations conducted between 1978 and 1983. Attorneys involved in the case estimate that the alleged misconduct potentially could touch as many as 30,000 relatives and friends of the dead. A portion of the money has been set aside for future lawsuits.

In streamlining the complex case, Superior Court Judge John L. Flynn Jr. combined all claims into one class-action suit and gave preliminary approval to a settlement worth an estimated $21 million. He also ruled that the agreement was entered into in good faith, barring all cross-complaints from the parties involved.

Flynn’s decision, outlined in an 18-page court order, followed a weeklong settlement hearing in Santa Ana.

“It’s a major step in the resolution of this case,” declared Betty McMullen, a Tustin lawyer who represents a majority of the plaintiffs who have come forward so far. “We are extremely pleased because the settlement is good and fair to everybody.”

Among the allegations against Harbor Lawn were charges that workers placed more than one corpse in a furnace at a time, and that ashes from corpses were commingled.

The defendants in the case, including Harbor Lawn and the Neptune Society of Orange County, which arranged some of the cremations, have denied any wrongdoing. They did, however, contribute to a settlement pool.

Nancy Sher Cohen, an attorney representing Harbor Lawn, said she was “absolutely thrilled” with the judge’s decision.

“I know it sounds strange after all we’ve been through, but this is the beginning of the final resolution in this case,” Cohen said.

The settlement agreement now must be approved by the bankruptcy court because Harbor Lawn has filed for Chapter 11 protection.

Then the names of potential members of the class-action suit must be gathered from the files of Harbor Lawn, Cohen said. As part of the settlement, about $250,000 has been set aside to contact those individuals and to advertise in major newspapers and on television to reach others. Those who think they deserve a share of the settlement must file a claim within 215 days, Cohen said.

Judge Must Give Final Blessing

Judge Flynn then must gave final certification to the proceedings.

The number to come forward will determine the amount of money that individuals will ultimately receive. Damages will be based on objective factors that are designed to measure how much a person suffered. Individuals will receive points determined by their relation to the deceased.

Cohen estimated that it will be a year or more before any money is distributed.

All but one of the plaintiffs has agreed to the settlement. Kenneth and Florine Beets of Huntington Beach, who filed suit on behalf of their son, Kenneth Jr., have said that they felt the case should go to court. They could not be reached for comment Tuesday. The settlement fund now includes $21.2 million, plus $1.8 million in interest. The defendants also agreed to pay the cost of administering the settlement, worth about $4.5 million.