Court Rejects Settlement of Faulty Plumbing Claims : Liability: Companies would pay $750 million to bend class action. Separate suits could cost more.

A Houston court has thrown out a $750-million settlement between thousands of homeowners and three chemical companies that made faulty plastic plumbing.

Hoechst Celanese Corp., Shell Oil Co. and DuPont Co. agreed in October to settle the class action, in which the homeowners claimed the chemicals used to make polybutylene piping and fittings had caused plumbing breaks and resulting water damage to their houses.

The amount was thought to be the largest ever negotiated to settle a class action over property damage.

Without the settlement, the three companies could face judgments amounting to millions of dollars more in future, independent lawsuits. For instance, last April, Hoechst Celanese, U.S. Brass-Eljer and Shell were ordered to pay $50 million to San Diego homeowners.

But state District Judge Katie Kennedy rejected the settlement in a Feb. 16 ruling that was made public late Monday. She gave no reason for her decision and none is required under Texas judicial procedure.

Skip Warren, one of the attorneys representing the homeowners, said, “There’s been a jurisdiction question all along . . . whether the court had the jurisdiction over the type of case involved.

“We think her order is wrong,” he said. “She has denied hundreds of thousands--or millions--of their only opportunity for relief for their plumbing problems.”

Warren said he believes Kennedy’s court is the proper one because thousands of homeowners in the Houston area, where Shell is based, were affected.

Shell officials said in a statement: “We are still reviewing our options and we are obviously disappointed.”

Telephone calls to DuPont and Hoechst Celanese were not immediately returned.

The settlement parties said they are considering appeals, which they have until early March to file.

There are no exact figures on the extent of damage caused by the pipes, which corroded and leaked with exposure to certain chemicals, including the chlorine found in most U.S. drinking water.