Land Developer Settles Lawsuit for $12.1 Million

PHOENIX - A $12.1 million civil environmental settlement, the largest in state history, has been jointly announced by Arizona Department of Environmental Quality Director Steve Owens and Attorney General Terry Goddard. The settlement resolves a 2005 lawsuit brought against land developer George H. Johnson, several of his companies, excavation contractor Jack McCall, 3F Contracting, Inc. and Preston Well Drilling. The defendants agreed that the State would be paid $12,111,500 to resolve all claims in the case. The 2005 lawsuit charged the defendants with numerous violations of state law and destruction of the State's natural and archeological resources. Johnson and his companies have agreed that the state will be paid $7 million, 3F Contracting, Inc. has agreed the state will be paid $5.05 million and Preston Well Drilling has agreed the State will be paid $61,500. Violations alleged in the lawsuit brought by the Attorney General's Office included: * Bulldozing and clearing of nearly 270 acres of State Trust Lands located in and near the Ironwood National Monument and the Los Robles Archeological District. * Bulldozing and clearing an estimated 2,000 acres of private lands in the Santa Cruz River Valley without obtaining permits required by state law. * Destroying portions of seven major Hohokam archeological sites, circa A.D. 750-1250. * Destroying more than 40,000 protected native plants on State Trust Lands, including Saguaro, Ironwood, Mesquite, Palo Verde and other protected species. * Violating the state's clean water laws by failing to secure required permits and discharging pollutants into the Little Colorado River, the South Fork of the Little Colorado River and tributaries of the Santa Cruz River. * Negligently causing a disease epidemic that resulted in the death of at least 21 rare Arizona desert bighorn sheep and serious injury to numerous others. According to the settlement, the defendants also agreed to dismiss with prejudice the following matters: * A lawsuit brought by Johnson Utilities, a Johnson-owned corporation, against the Arizona Department of Environmental Quality, seeking injunctive relief and damages. * A counterclaim brought by Johnson defendants alleging defamation by the Attorney General and his Office. * A civil rights lawsuit alleging selective enforcement. Prior to the settlement mediation, the Special Discovery Master ruled that the State of Arizona had established a prima facie case for punitive damages against George Johnson and had ordered that Johnson produce all financial statements and a net worth report requested by the State of Arizona.