lawsuit

Fri, 2014-02-14 11:00Farron Cousins
Farron Cousins's picture

Oil Industry Profited Off Polluting Oil Spills, Fraud Investigation Underway

When an oil company’s negligence leads to an oil spill, the financial costs incurred by the company can be crippling.  They have to pay clean up costs, federal fines, and, in many cases, settlements to victims who have been affected by the spill.  Since these costs can be such a burden to the multi-billion dollar industry, they’ve figured out a way to recoup some of their losses by deceiving all the players involved.

Of course, these aren’t the massive oil spills that we’ve seen from Exxon and BP; these are the smaller ones that most people don’t hear about that typically occur when storage containers leak.  That’s where the industry has learned that oil spills can actually be good for their bottom line.

The scheme is known as “double dipping,” and it involves oil companies receiving both insurance funds for spill cleanup along with state funds to clean up oil leaks from underground tankers.  This allows the company to use funds for cleanup, and usually have a little left over to put in their pockets.

A new report by Reuters succinctly captures the essence of what’s happening in a single quote:  “When I first saw these cases, I thought this is kind of incredible,” said New Mexico assistant attorney general Seth Cohen, who handled the lawsuit for the state. “The oil companies have, in effect, profited off polluting.”

Fri, 2013-12-20 05:00Farron Cousins
Farron Cousins's picture

BP Attempts To Misdirect Public With Claims Of Fraud

Oil giant BP is again attempting to convince the public that the oil spill settlement process for their destruction of the Gulf of Mexico resulting from the 2010 Deepwater Horizon oil rig explosion and leak, is completely riddled with fraud.

The company filed a fraud lawsuit earlier this week to stop payments on the claim process while investigators look into the fraud allegations. According to BP, one of the law firms representing oil spill victims has been submitting and receiving payment for claimants who don’t actually exist. 

The specific payments that BP is hoping to stop come from the Seafood Compensation Fund, a fund that was set up to pay fishermen and others who rely on the seafood industry as their source of income. The company says that Louisiana attorney Mikal Watts has filed 648 claims on behalf of seafood industry workers, and that 8 of those have been verified as accurate with 17 more still pending approval. 

Watts’ attorney has fired back at BP, saying that Watts did nothing illegal during the spill process, and submitted the appropriate documentation for every spill claim that he has filed. BP insists that at least half of Watts’ clients don’t exist.

Tue, 2013-10-15 11:00Farron Cousins
Farron Cousins's picture

Justice Delayed For Mayflower Oil Spill Victims

As the government shutdown enters its third week, new and disturbing side effects are beginning to surface.  These adverse affects are arising from the U.S. court system, where federal prosecutors are unable to perform their day-to-day activities in many cases due to a lack of federal funding.

While this is bad news for American citizens, it is great news to oil giant ExxonMobil.  The federal prosecutors handling the case against Exxon for their Pegasus pipeline tar sands spill have been forced to request that the judge overseeing the lawsuits against Exxon delay the suit until government operations resume.

The U.S. attorneys and environmental investigators from the Justice Department and EPA are unable to work on the case due to the lack of funding.  According to the Associated Press, these workers are not even able to work on the case on their own time without pay, since it is a federal, not civil, suit.

In addition to the federal lawsuit, Exxon is currently facing at least $1.7 million in federal fines for the tar sands spill.  But again, as long as the government remains partially shut down, there is not enough staff to go around, and those fines will remain unpaid.  It is estimated that at least 94% of the entire EPA staff is currently furloughed as a result of the government shutdown.

This news is particularly disturbing for the residents of Mayflower, Arkansas, as they had worked very hard to get the lawsuit fast-tracked in the wake of the spill earlier this year.  The longer the shutdown lasts, the longer it will take for justice to be served against Exxon.  It also means that residents will go even longer without relief from the dangers affects of the diluted bitumen.

Tue, 2013-09-24 06:00Farron Cousins
Farron Cousins's picture

An Orchestrated Cover Up Of Exxon's Pegasus Pipeline Spill Health Hazards?

Nearly six months have passed since ExxonMobil’s Pegasus tar sands pipeline ruptured and released as much as 7,000 barrels of diluted bitumen into Mayflower, Arkansas.  And as soon as the company realized that they had a problem, the cover up began.

From the outset, there has been a clear effort on behalf of Exxon to mislead and deceive the public about the effects that the tar sands spill will have on both the environment and public health.  As a result, the population in Mayflower is suffering at an unprecedented rate from mystery illnesses that can be linked back to exposure to tar sands crude.

Just like BP during the Deepwater Horizon oil gusher, Exxon attempted to deceive the public about how much oil had actually been spilled.  The company claimed that the amount was somewhere between 3,000 and 4,000 barrels.  But a report by Inside Climate News, based on numbers from the U.S. EPA, said that the actual number was closer to 7,000 barrels.  However, the EPA refused to correct Exxon’s numbers and did not include the agency’s own estimates in their press releases, instead choosing to parrot the bogus numbers asserted by Exxon.

That was just the beginning of Exxon’s plan to mislead both the public and the federal government.  The major problem the company knew it would face would be the health impacts on residents, so Exxon has done everything in its power to prevent the truth from leaking out.  (Those kinds of leaks are easier to prevent.)

Mon, 2013-08-26 05:00Farron Cousins
Farron Cousins's picture

BP Launches Massive PR Campaign To Demonize Oil Spill Victims

BP, the oil giant that, along with Halliburton and Transocean, was responsible for the 2010 Deepwater Horizon oil rig explosion and oil leak in the Gulf of Mexico, is crying foul in the claims process of settlements for the victims of the spill.  The company has launched a massive public relations offensive to paint themselves as the victims in this situation.

According to The Hill, BP CEO Bob Dudley said recently that the entire claims process has been “absurd,” and that his company has been more than generous with their payments.  BP spokesperson Geoff Morrell said:  “While we remain committed to paying legitimate claims, we did not agree to pay for fictitious losses, or for claims that are based on fraud or tainted by corruption.”

While the overall PR war may appear to be aimed at the victims along the Gulf Coast, the real targets of BP’s campaign are trial lawyers.  They have even enlisted the help of the largest business lobby and strongest advocates for “tort reform”, the U.S. Chamber of Commerce.

The Hill reports that a recent ad placed by BP in The Washington Post quoted National Association of Manufacturers CEO Jay Timmons, saying, “Too often these days, the tort system is nothing more than a trial-lawyer bonanza, and that’s not fair to individuals seeking redress and no way to encourage investment in manufacturing to create tomorrow’s high-paying jobs.”

The reason that the company is trying to paint the claims process as plagued with fraud is that they had underestimated the amount of claims that they would have to pay out, and their settlement fund is quickly running dry.  This means that subsequent payments will have to come directly out of the company’s profits, a move that is not sitting well with shareholders who were promised that the price tag would not exceed $8 billion

Mon, 2013-08-12 12:18Farron Cousins
Farron Cousins's picture

Could Lead Paint Lawsuit Pave Way For Class Action Against Coal Industry?

Coal industry executives ought to pay attention to the lead paint lawsuit currently happening in the California court system.

Recently, a lawsuit was filed against the makers of lead paint, alleging that the industry knew about the toxicity of their product and yet still promoted it as “safe” to the public.  The industry has faced many lawsuits over their products in the past, most of which were unsuccessful for the victims, due to the fact that the industry was often up front about the dangers of their products, and they funded public studies to determine the health effects.

But things have changed in the American legal system, and attorneys are now taking a page out of the tobacco litigation playbook.  By unearthing documents that detail the lead paint industry’s attempted cover-up of the dangers, they avoid the “buyer beware” caveat that the tobacco industry used for so long. 

And just like the tobacco industry, lead paint manufacturers were specifically targeting children with their ads.  The California lawsuit is making that a central part of the trial.  Also reminiscent of the tobacco litigation, the suit was filed by cities and municipalities, not individual victims, greatly increasing the chance for success.

The coal industry should be paying very close attention to the progress of this litigation, as their activities could become the next target of skilled attorneys.  For decades, the coal industry has been poisoning American citizens with their coal-mining, -burning and -dumping activities.  Additionally, the dismal working conditions for miners has cost many families an unnecessary loss of life.

Fri, 2013-07-26 05:00Farron Cousins
Farron Cousins's picture

Louisiana Sues Oil Companies For Wetlands Damage in Gulf Showdown

After decades of operating with complete disregard for the environment, the dirty energy industry finally has to face the music for destroying the wetlands that form a natural barrier against storm damage in the state of Louisiana.

The suit, filed by the board of the Southeast Louisiana Flood Protection Authority-East, claims that the oil and gas industry's irresponsible pipeline placement, drilling, and excavation methods have eroded and polluted vital wetlands in Louisiana. 

The New York Times has more:

The board argues that the energy companies, including BP and Exxon Mobil, should be held responsible for fixing damage done by cutting thousands of miles of oil and gas access and pipeline canals through the wetlands. It alleges that the network functioned “as a mercilessly efficient, continuously expanding system of ecological destruction,” killing vegetation, eroding soil and allowing salt water into freshwater areas…

The suit argues that the environmental buffer serves as an essential protection against storms by softening the blow of any incoming hurricane before it gets to the line of levees, flood walls, and gates and pumps maintained and operated by the board. Losing the “natural first line of defense against flooding” means that the levee system is “left bare and ill-suited to safeguard south Louisiana,” the lawsuit says.  The “unnatural threat” caused by exploration, it states, “imperils the region’s ecology and its people’s way of life — in short, its very existence.”

The suit alleges that the wetlands, which took more than 6,000 years to form, provide vital protection for the state from the impacts of severe storms, floods, and hurricanes.  The degradation caused by the dirty energy industry’s activities leaves the state more vulnerable to the effects of severe weather. 

Sun, 2013-06-02 08:04Farron Cousins
Farron Cousins's picture

Legal Headaches Begin For Exxon Over Pegasus Pipeline Rupture

Residents in Mayflower, Arkansas, the site of the recent Pegasus tar sands pipeline rupture, have filed suit against pipeline operator Exxon for health issues and property damage that have arisen since the spill.

Those affected by the pipeline’s spill have complained of numerous, though mild, health problems including headaches, nausea, and breathing difficulties.  While these symptoms are relatively mild, it should be noted that it has only been a month since the spill, and more severe problems are likely to creep up in the coming months.

The main concern is that the neurotoxins and carcinogens within the tar sands, particularly those contained in the diluted bitumen (dilbit), will plague the residents for years to come.

Sat, 2013-05-25 14:00Farron Cousins
Farron Cousins's picture

Gas Industry Successfully Overturns Colorado Fracking Ban

The townspeople in Fort Collins were greeted with some unfortunate news earlier this week, as their city council decided to overturn a ban on hydraulic fracturing that had been in place for only a few short months. The decision to overturn the ban was based solely on the threat of a lawsuit from the oil and gas industry.

The mere threat of a lawsuit from the only fracking company in town – Prospect Energy – was enough to send the city council cowering in submission, placing the entire town at risk of the negative health impacts associated with fracking.

The gas industry was aided in their efforts by Colorado’s Democratic Governor John Hickenlooper, who warned the town of Fort Collins that if the ban were to remain in place, they could face legal intervention from the state itself.

Hickenlooper’s announcement is less than surprising. He has received more than $45,000 from the energy industry during his campaigns, along with another $104,000 from the real estate industry (a sector that stands to gain a lot with the leasing of property to fracking.)

Prospect Energy was aided in their efforts by the industry front group Energy in Depth. After the ban was lifted, EID issued a press release saying the following:

Mon, 2013-04-08 17:45Carol Linnitt
Carol Linnitt's picture

PHOTOS: Mayflower, Arkansas Residents Launch Class Action Lawsuit After Exxon Tar Sands Disaster

Residents of Mayflower, Arkansas, are suing ExxonMobil for damages in a class action lawsuit that is seeking more than $5 million in compensation for property damage.

“This Arkansas class action lawsuit involves the worst crude oil and tar sands spill in Arkansas history,” the lawsuit reads. The filed claim indicates more than 19,000 barrels of oil were spilled.

Both the Attorney General Dustin McDaniel and the US Department of Transportation's Pipeline and Hazardous Material Safety Administration (PHMSA) have indicated investigations into the pipeline rupture are ongoing.

Between 2010 and 2012, pipeline incidents incurred more than $662 million in property damages annually. More than 20 years of PHMSA records indicate levels of pipeline related accidents are consistent - around 250 occur each year - while the cost of those accidents is steadily increasing.

These recently released images show the scope of the damage has grown far beyond the nearby residential street:

Pages

Subscribe to lawsuit