Key Disposal, Inc. Case Settles for $500,000

This page last reviewed August 10, 2010

In August 2009, Key Disposal, Inc., a Montebello, California based waste hauling company, and its president stipulated to a total penalty of $500,000 for violating air quality regulations.  An ARB investigation showed that Key Disposal, Inc., failed to properly self-inspect the portion of their diesel truck fleet that falls under the Periodic Smoke Inspection Program (PSIP) and failed to properly retrofit adequate numbers of diesel vehicles under the Solid Waste Collection Vehicle (SWCV) Program.  ARB initially offered to settle the case at a substantially lower amount.  However, no agreement was reached, so the Office of the Attorney General for the State of California brought an action in Los Angeles County Superior Court against Key Disposal, Inc., John Katangian, and Shelline Katangian on behalf of ARB.  This action sought penalties per day of violation, per vehicle, which is authorized pursuant to Health and Safety Code section 39674.  A court-appointed mediator was unable to negotiate an agreement.  Not until the day of trial did Key Disposal Inc. and the Katangians agree to settle the matter.  Key Disposal, Inc. and John Katangian will pay a total of $250,000 and the balance will be stayed, provided defendants bring their entire fleet of vehicles into compliance with the SWCV and PSIP rules by September 29, 2009, defendants thereafter maintain their entire fleet in full compliance with the SWCV and PSIP rules, and John Katangian and other responsible employees complete the California Council on Diesel Education and Technology (CCDET) class.