A state court of appeal has tossed a $661 million judgment by oyster farmers against Louisiana taxpayers. “Despite evidence showing that some of the allegedly dead leases have produced thousands of oysters since the diversion began operating in 1991, [District Court Judge Manuel] Fernandez sided with the plaintiffs and awarded them $370 million — more money than the leases had ever generated.” A related $1.3 billion judgment is still on appeal to the Louisiana Supreme Court (May 25; Oct. 18). (Jeffrey Meitrodt, “Oyster farmers’ $661 million in awards tossed on appeal”, New Orleans Times-Picayune, Sep. 10; latest Naked Ownership blog entries) (via Bashman). Update Oct. 24: La. Supreme Court throws out cases.
Posts Tagged ‘environment’
Sunburst Works Refinery $41M verdict
In 1955, there was a gasoline pipeline leak at the Sunburst Works Refinery that caused minor contamination of a 19-acre underground site. Texaco cleaned the spill at the time, and did further millions of dollars of cleanup starting in 1993. State regulators determined that there was no health effects, and that benzene levels in Sunburst, Montana were no different than in areas unaffected by the spill. The state Department of Environmental Quality ruled that nothing more needed to be done beyond additional monitoring, not least because the groundwater at issue isn’t used for anything–even livestock find it “naturally too briny” to drink.
Not good enough, say some residents and their lawyers, who blame the half-century-old spill for a variety of illnesses from arthritis to mononucleosis. They sued to require additional multi-million dollar cleanup. The plaintiffs originally sought damages for decreased property values, though townpeople who refused to join the lawsuit say that the main cause of the decreased property values is bad publicity from the 2001 lawsuit. (There are only 82 plaintiffs in a town of about 400.) Texaco acknowledges responsibility for the spill, but disputed the need to spend millions more on a clean-up methodology of little efficacy. The judge refused to allow Texaco to introduce evidence that they did exactly what the Montana regulators asked them to do, and a jury awarded a $41 million verdict, including $25 million in punitive damages. Texaco will appeal. The case is important because the verdict could encourage other “double-whammy” lawsuits on companies who have already been spending millions to comply with the extensive state and federal environmental regulations. (Kathleen A. Schultz, “Texaco to appeal Sunburst ruling”, Great Falls Tribune, Aug. 20; “Jury Rules Against ChevronTexaco In Cleanup Suit”, Wall Street Journal, Aug. 20 (sub – $); Reuters, Aug. 20; Kathleen A. Schultz, “Texaco must pay Sunburst $41M”, Aug. 19; Kathleen A. Schultz, “Texaco-Sunburst trial gets under way”, Jul. 26).
Fairy shrimp v. people
A little-remarked section of the 2004 National Defense Authorization Act amended the Endangered Species Act to require federal agencies to consider impact on national security before designating land as a “critical habitat.” Thus, the Fish & Wildlife Services’ new critical habitat designation for the fairy shrimp–inch-long crustaceans that live in “vernal pools” (i.e., mud puddles)–no longer includes over 3000 acres of Camp Pendleton, which had suffered tortuous restrictions on military training under the old version of the law. (“Habitat plan includes land in county”, San Diego Union-Tribune, Apr. 29; Mark Mahoney, “Environmental Update”, Spring 2004; Darren Mortenson, “Pendleton and the environment – Marines seek sweeping exemptions from laws”, North County Times, Oct. 16, 2003; Joseph A. D’Agostino, “Endangered Species Envelop Marines in California”, Human Events Online, Feb. 24, 2003; Bill Horn press release, Jun. 24, 2002; Suzanne Struglinski, Greenwire, “Marine Corps claims species impede training at Calif. base”, undated).
Not so lucky Los Angeles International Airport, where 108 acres have been designated a critical habitat–even though the only shrimp found there have been non-hatched eggs, and even though letting standing water on the airport grounds creates an ecosystem that attracts birds, which in turn endanger airplanes. (Jennifer Oldham, “Shrimp Pose Big Problem for LAX”, LA Times, Aug. 15; Professor Bainbridge blog, Aug. 15). The LA Times uncritically quotes FWS officials as saying they had “no choice” because of a federal court order, but in fact the order (Building Industry Legal Defense Foundation v. Norton, 231 F. Supp. 100 (D.D.C. 2002)) merely required the agency to create a critical habitat. Indeed, the order was issued because a previous FWS designation failed to adequately evaluate the economic impact, as the law required. More litigation is likely.
It’s the zoning
Update: Forbes on Lodi mess
Champerty in the suites: “Lehman Brothers’ hopes of underwriting some juicy tort litigation crashed badly, leaving behind the toxic residue of avarice and gullibility.” Forbes examines one California town’s “man-made legal disaster”, a saga previously covered in our posts of Jan. 12, Jan. 17 and May 8 (Scott Woolley, “Municipal bombs”, Forbes, Jun. 21).
Cuyahoga River fire revisited
On NRO today, Jonathan Adler debunks one of the key events in the history of environmental regulation — the 1969 fire on the Cuyahoga River in Cleveland. Says Adler: “Oil and debris on the river’s surface did burn in 1969, and federal environmental statutes were the result, but so much else of what we ‘know’ about the 1969 fire simply is not so. It was not evidence of rapidly declining environmental quality, nor was it clear evidence of the need for federal action.”
Update: This post at the Volokh Conspiracy includes a link to Adler’s article-length treatment of the subject.
Santa Monica sues MTBE lawyers
The city of Santa Monica, Calif. made headlines last year when it won a large settlement from oil companies over MTBE (methyl tertiary-butyl ether)contamination of its water supply, but now it’s locked in a bitter legal dispute with the private law firms it hired over their fee bill, which could reach $66 million. The firms include Miller & Sawyer, Baron & Budd, and Sher & Leff. The case is being watched elsewhere in part because Baron & Budd and other law firms have signed up numerous other state and local governments as clients to press MTBE claims on a contingency basis. (Eric Peters, “Nation watches suit of Santa Monica v. lawyers”, Contra Costa Times, Jun. 6; Blair Clarkson, “City Overcomes Final Hurdle in Oil Suit Battle”, The Lookout, Mar. 4)(see Jun. 11-12, 2002, Nov. 25, 2003). See also Doug Bandow, “Energy Bill Debate Confirms a Lawyer-Democrat Alliance”, Cato Daily, Feb. 14. More (via SoCalLawBlog): Gregory Crofton, “Santa Monica fighting legal bills for MTBE lawsuit”, Tahoe Daily Tribune, Jun. 4.
New oil refineries? Forget it
No new oil refineries have been built in the United States since 1976 — not even in California, where capacity shortages have especially pinched. The reason is not the lack of demand, but the legal/regulatory environment. (Mike Angell, “Rules, Small Returns Block New Refineries”, Investor’s Business Daily, Jun. 10; Dale Kasler, “No new California refineries despite soaring gas prices”, AP/Oakland Tribune, Jun. 10).
Liberal bloggers: bring back nuclear power
So say Mark Kleiman (Jun. 4), Matthew Yglesias, and Brad DeLong.
4,000 federal crimes
A new study for the Federalist Society finds that the U.S. Code now defines well over 4,000 crimes, and that the count has risen by more than a third since the early 1980s. A substantial share of the newer offenses, around a third, are environmental in nature, and the rate of enactment of federal criminal statutes spikes in election years, finds the author, Prof. John S. Baker, Jr. of Louisiana State University Law Center. Moreover, the trend is toward a chipping away of the traditional requirement for a mens rea — that is, a guilty or otherwise knowing state of mind — in favor of the criminalization of what may be inadvertent regulatory infractions. (“Measuring the Explosive Growth of Federal Crime Legislation”, study in PDF format/supplementary reading). More: William L. Anderson and Candice E. Jackson, “Washington’s Biggest Crime Problem”, Reason, Apr.