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Lawsuit Against Sriracha Hot Sauce Factory Dropped; City Tables Nuisance Resolution

Lawsuit Against Sriracha Hot Sauce Factory Dropped; City Tables Nuisance Resolution

By Frank Shyong, Los Angeles Times

LOS ANGELES — The Irwindale City Council has decided to drop a lawsuit against the Sriracha hot sauce factory and table a separate resolution declaring the factory a public nuisance.

The city and the factory began warring late last year, when residents began to complain of a spicy odor that caused headaches, heartburn and watering eyes.

The trial was scheduled to begin this November, and the public nuisance declaration would have eventually authorized city officials to enter the factory and make the changes themselves.

But city officials said Huy Fong Foods Inc. had finally demonstrated a specific written commitment to solving the smell issues. Mayor Mark Breceda, who toured the factory earlier this week, said the conflict should not have been so drawn out.

“We’re almost sorry that this has gone on so long,” Breceda said. “We’re looking forward to being partners for a very long time.”

The council voted unanimously Wednesday to table the resolution and decided in closed session to drop the lawsuit.

Huy Fong Foods Chief Executive David Tran was not present at the meeting but thanked his supporters in a statement to the Los Angeles Times.

“From now on, I will be concentrating on making my hot sauces quality better and better, with the price being lower and lower,” Tran said.

It wasn’t immediately clear why the city has relaxed its position. Tran has promised before to fix the issues, in writing and in person at council meetings through an attorney, but Irwindale officials still sought regulatory action.

The conflict has dragged on for nine months, drawing the attention of politicians around the country, who sought to lure the popular hot sauce manufacturer to their state.

John Tate, attorney for Huy Fong Foods, said the council’s decision Wednesday did not result from any legal settlement between attorneys.

“Management (of the city) met with the mayor, and they had a frank discussion which resulted in a willingness to work together,” Tate said.

City officials say they will visit the Sriracha plant again when it begins to grind peppers harvested in the fall. The plant is still functioning under a court injunction that bans harmful odor-causing activities, but it’s up to the city to go back to court to enforce that, Tate said.

The conflict seems to have ended without any official agreement about whether there ever was a harmful odor.

The South Coast Air Quality Management District did not find enough evidence of a harmful smell to justify issuing a violation, and air quality officials say about two-thirds of the complaints they received came from just four households.

The first complaints came from City Councilman Hector Ortiz’s son. In February, Huy Fong Foods began to offer daily tours through the factory and asked each participant if they experienced any harmful odors. None did.

But the city’s own smell study, by Santa Monica environmental consulting firm SWAPE using a different survey method, found harmful odor levels in multiple areas around the city.

City officials also mailed a survey to residents and about 40 percent of respondents said they could identify the smell, according to copies of the responses obtained by the Times. About 16 percent of respondents said the smell was harmful.

Tran said he had made some changes to the filtration system at the plant, and he promised in a letter to the council to fix whatever smell issues the city identifies.

“We are obviously happy with the decision the city made to drop the lawsuit and will continue to make a quality product for everyone to enjoy,” said Adam Holliday, director of operations for Huy Fong Foods. “We feel confident that the system we have is adequate and we believe that the troubles with the city are over.”

Photo via Flickr 

FOILED: Murdoch Surrenders On Corporate Acquisition In Face Of Escalating Phone Hacking Scandal

LONDON (AP) — Rupert Murdoch’s News Corp. media empire dropped its bid to takeover lucrative British Sky Broadcasting on Wednesday ahead of a House of Commons vote in which all three major parties were to issue that very demand.

News Corp. deputy chairman and president Chase Carey said “it has become clear that it is too difficult to progress in this climate.”

Prime Minister David Cameron acknowledged that “a firestorm” was engulfing Britain’s press, police and government over allegations of phone hacking and alleged police bribery by Murdoch’s U.K. papers, and named a judge to lead the investigation.

The hacking allegations even leapt across the Atlantic. Speaking hours before the vote, Cameron vowed to find out whether U.K. media may have sought phone numbers of 9/11 victims in their quest for sensational scoops.

Outrage has grown and Murdoch’s News Corp.’s share price has fallen since a report last week that The News of the World hacked the phone of teenage murder victim Milly Dowler in 2002, followed by claims of intrusion into private records by Murdoch’s other U.K. papers, The Sun and The Sunday Times.

Dowler’s family was meeting with Cameron at 10 Downing Street later Wednesday.

Shares in BSkyB were down 2.3 percent Wednesday, the seventh straight day of losses, as hopes faded for a share-boosting takeover bid.

“There is a firestorm, if you like, that is engulfing parts of the media, parts of the police, and indeed our political system’s ability to respond,” Cameron said in the House of Commons. He said the focus must now be on the victims, and make sure that the guilty are prosecuted.

Police have arrested eight people so far in their investigation, including Cameron’s former communications director Andy Coulson, a former editor of News of the World. No one has been charged.

Cameron appointed Lord Justice Brian Leveson to lead the inquiry, which will be able to compel witnesses — including government figures — to give evidence under oath.

Leveson will first investigate culture, practices and ethics of the press, its relationship with police and the failure of the current system of self-regulation, which is expected to last up to 12 months. Only then will the inquiry focus shift to what went wrong at the News of the World tabloid and other papers, Cameron said.

The suggestion that 9/11 victims may have been were targeted surfaced Monday in the Mirror, a British competitor of The Sun. It quoted an anonymous source as saying an unidentified American investigator had rejected approaches from unidentified journalists who showed a particular interest in British victims. It cited no evidence that any phone had actually been hacked.

In Washington, Sen. Jay Rockefeller, a Democrat from West Virginia, urged an investigation into whether Murdoch’s News Corp. had violated U.S. law because of the British paper’s activities.

If there was any hacking of phones belonging to 9/11 victims or other Americans, “the consequences will be severe,” said Rockefeller, chairman of the Senate Committee on Commerce, Science and Transportation.

Murdoch had hoped to gain control of the 61 percent of BSkyB shares that his News Corp. doesn’t yet own, but the bid was delayed for several months while the British government’s Competition Commission reviewed monopoly concerns.

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