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Federal appeals in SF court nullifies Arco deal with the disabled

Thursday February 06, 2003

By DAVID KRAVETS
AP Legal Affairs Writer

SAN FRANCISCO (AP) A federal appeals court has set aside a settlement that required Atlantic Richfield Co. to try to make its California gas stations accessible to the disabled.

The 9th U.S. Circuit Court of Appeals said Thursday that the 2000 deal was unfair because it virtually waived the rights of the disabled, who had sued under the Americans with Disabilities Act, to recover damages from Arco.

The suit claimed that, among other things, some Arco filling stations did not have wide enough entrances, wheelchair ramps or adequate restroom facilities. Arco, a subsidiary of BP America Inc., oversees some 1,200 California filling stations and mini-markets.

Under the original deal approved by a federal judge, Arco agreed that its new outlets would pass muster under federal law. Arco also agreed to make improvements to existing stations unless it was structurally impossible or if ``selling or serving'' space would be lost.

The deal also awarded $5,000 to a single named plaintiff, $50,000 in attorney's fees and $195,000 to disability rights organizations.

Thursday's reversal was based on objections by some of the disabled who were included in the class-action settlement.

The San Francisco-based appeals court nullified the accord, saying it allowed the company ``to escape with little penalty.''

``Although we are always cautious to reverse the certification of a class and approval of a settlement agreement because of the time and effort dedicated by the parties and the district court, we are compelled to do so in this case because of the unjust terms of the decree,'' Judge Warren J. Ferguson wrote for the unanimous three-judge panel.

Representatives of the objecting class members did not return calls for comment on whether they would revive the lawsuit.

A BP America representative said the company was reviewing the decision.

The case is DeGroote v. BP America Inc., 00-57099.

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Editors: David Kravets has been covering state and federal courts for a decade.

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