Some 5,000 homeowners in 15 Santa Clarita Valley housing developments will benefit from a $41 - million settlement approved by a state court to be paid primarily by builders, plumbers and water softening companies who installed defective foreign-made galvanized steel water pipes. The class-action lawsuit alleges that the developers, suppliers, plumbing contractors, manufacturers and water softening companies are liable for construction defect, strict product liability, negligence and other causes of action for the use of galvanized pipes in the Santa Clarita Valley potable and plumbing systems.

Years after their homes had been built, residents in several Santa Clarita Valley developments, began to detect such problems as pinhole leaks, brown rusty water, premature pipe corrosion and deterioration. Some homeowners had to replace their entire plumbing systems and ceilings that collapsed because of leaks. The foreign-made galvanized steel pipes prematurely corrode when they come into contact with water, and as the corrosion progresses, holes appear in the pipes.