Recently in Oil Spill Liability Category

September 29, 2011

BP's Oil Dispersants Linked to Cancer

Employment and business losses caused by BP's oil spill are serious, of course, but those losses can be eclipsed by the human misery caused by cancer. BP's oil dispersants have been linked to cancer. Chemical dispersants were used by BP to help clean up the mammoth oil spill. They break up oil into smaller particles that ultimately move the oil from the surface of water or shores into the water column for ultimate distribution elsewhere in smaller concentrations.

Some 4.9 million barrels of oil gushed into the Gulf of Mexico. And 1.8 million gallons of dispersant were spread by BP during the 3-month long ordeal. The dispersants covered the waters and shores of Florida, Alabama, and Louisiana. Five of the ingredients in the dispersants, according to the U.S. Environmental Protection Agency, are linked to cancer.

Of course, BP didn't make this information public. It came from a Freedom of Information Act request by the Florida Wildlife Federation, The Gulf Restoration Network, and Earthjustice, among others. Their report, "The Chaos of Clean-Up: Analysis of Potential Health and Environmental Impacts of Chemicals in Dispersant Products" emphasizes the fact that some dispersants are safer than others. An Earthjustice spokesman said, "The testing (for safety) can't be done at the moment of the disaster; it has to be done ahead of time to avoid chaos." That meant that little was done to determine what dispersant should be used in this disaster to provide the utmost safety to the populations along the Gulf coast.

The medical problems from dispersants documented so far include loss of memory, seizures, severe abdominal pain, fatigue, irritability, and other neurological and endocrine problems, but, now, with cancer as a possibility, the stakes are higher. The fault may not lie solely, or at all, with BP. The dispersant manufacturers tend to keep secret the ingredients in their products, possibly because they know their dangers.

February 3, 2011

Rising Concerns About Legitimacy of BP Claims Process

Kenneth Feinberg, a Washington lawyer, was brought in during the summer to administer the 20 billion dollar fund that British Petroleum set up to compensate victims of the April oil spill from the Deepwater Horizon. Now, amid charges from the Attorney General for Louisiana and others that Feinberg is not acting independently of BP, we learn that of the 91,000 Gulf oil spill claims, just one has resulted in final payment being made. Furthermore, we now know that Feinberg's office approved that final payment of $10 million to one of BP's business partners without his office even inspecting the claim for merit. As he put it, "We never reviewed the claim; we honored the request of the parties to fund the claim." In other words, ten million of the fund set up by BP is gone to BP's business partner without any oversight whatsoever by Feinberg. In many people's minds, this makes Feinberg's administration of the fund suspect.

With that in mind, there are 3 ways to make claims to the fund now. First, victims can file for a quick one-time payment of five thousand dollars for individuals and twenty-five thousand for businesses. A release of all claims, except for future claims for bodily injury, must be signed. The person or business cannot make any further claim. The right to sue BP and other defendants will be waived. Signing a release is dangerous since the long term effects of the spill are largely unknown.

Other oil spills, including the one in Alaska from the Exxon Valdez, have proved that. Damages from submerged oil and damages to the seafood continue twenty years later. Second, it is possible for individuals and businesses to file for interim payments and to be paid if they can continue to show losses. Third, claimants can opt for a final settlement of all present and future damages, but to do that, they would have to sign a release. Again, that seems to be a dangerous thing to do in many cases, because if the long term effect of the oil isn't known, how can claimants compute future damages at this point?

If the claims fund administered by Feinberg disagrees with a victim's assessment, the victim can appeal to a 3-judge panel. But guess who picks the panel. Feinberg. The appeals process hasn't been used yet, so many questions remain about how it will be used. Dangers and pitfalls are associated with the signing of any release. The same is true of releasing BP when any option other than interim payment is selected. The required release contains language waiving the claimant's right to sue roughly 120 other possible defendants and even gives BP the right after a settlement to get all of its money back from the other companies and more in some cases. What small sum is Kenneth Feinberg being paid by BP for his administrative work? Only eight hundred fifty thousand dollars a month. Does this cause you to be suspicious of whatever he does?

September 30, 2010

The David v. Goliath History of Our Civil Justice System Against Toxic Waste and Environmental Harm

Last week while discussing our civil justice system, I talked about corporate pollution. I said that corporations have consistently responded to the environmental disasters they have caused by passing the buck for as long as possible. They know the initial outrage will dim, media coverage will diminish, and political administrations will change. Full accountability for their harm cannot be obtained by government agencies. The job is too large since our agencies are underfunded and understaffed. Yet, more accountability is exacted from these corporations than one would expect. The force behind that comes from the private sector.

Into the void that existed in the government's ability in the 1960s to enforce environmental laws to keep our air, water, and lands safe from toxins came unexpected allies, the workers in the American civil justice system. They were the attorneys who advocated for clean air, clean water, and monetary punishment for those who endangered our lives by creating environmental mayhem. With them, but in different roles, were the judges and juries who sat on the groundbreaking cases.

In 1965, private attorneys took on one of the huge energy company, Consolidated Edison, to stop construction of a power generator at Storm King Mountain in New York. Con Ed planned to cut away part of the mountain and turn the nearby forest into a reservoir. The case forced Con Ed to abandon the project. The mountain still stands. This landmark case, which bolstered the government's ability to take environmental and esthetic concerns into consideration when granting permits to corporations, signaled that the civil justice system would become a critical vehicle for progress in environmental issues. Another illustration is worth giving.

In the 1940s and 50s, Hooker Chemical & Plastic Corporation dumped twenty thousand tons of hazardous chemical waste in the abandoned canal that was the centerpiece of the Love Canal neighborhood of Niagara Falls. It later covered the dump with dirt and sold the property to the school board for one dollar. During the next decades, the chemicals leached out of the drums and into the surrounding soil. In the 1970s, the EPA learned of the problem. An EPA administrator reported, "Trees and gardens were turning black and dying. The air had a choking smell. Children returned from play with burns on their hands and faces. And then there were the birth defects."

Attorneys representing those citizens forced the corporation to pay restitution, and, eventually, nearly a thousand families were evacuated to safe areas. The national outrage sparked by this case in our civil justice system paved the way for the liability act known as Superfund. It empowers federal agencies to hold polluters accountable for their damages and compel cleanup. Our civil justice system worked there, it worked to require cleanup in the Exxon Valdez spill, and the threat of litigation in it spurred BP to clean up our beaches.

Our civil justice system is David. Corporate America is Goliath. Mark another point for David. History has repeated itself.

September 23, 2010

Does Our Civil Justice Succeed in Handling Corporate Polution of the Environment?

How well does our civil justice system perform against corporate pollution of our environment as in the BP oil spill? In 1989, the Exxon Valdez struck a reef off Alaska and spilled more than 10 million gallons of oil over a thousand miles of remote coastline. Exxon's immediate response was to embark on a campaign to avoid responsibility that would last decades. Now, twenty years later, the BP oil spill has ruined Louisiana marshes and threatens its fisheries for years to come. History is repeating itself as BP blames the owner of the rig and all its subcontractors for the catastrophe.

Corporations have consistently responded to the environmental disasters they have caused by passing the buck for as long as possible. They know the initial outrage will dim, media coverage will diminish, political administrations will change, and industry regulators will go through the revolving door to join the industry they once watched. In response to calamities like oil-coated beaches in Santa Barbara in the west and Lake Erie's burning rivers in the east, the consciousness of a nation was raised in the nineteen sixties to corporate exploitation and abuse of the environment. The first attempts of the sixties movement to rein in corporate destruction of our ecology resulted in congressional passage of such laws as the Clean Water Act, the National Environmental Policy Act, and the Clean Air Act to impose limits on corporate polluters that had been dumping toxins in our air, water, and land with abandon. Other laws have since been passed, but these acts remain the pillar of environmental law to this day. However, laws are only as good as their enforcement.

We see today how an underfunded and understaffed FDA cannot adequately inspect all egg farms to see that the eggs delivered to the consuming public are safe for consumption. Unfortunately, we have also seen how underfunded and understaffed government agencies let Wall Street cost our government and us a fortune, because they weren't able to inspect everything that was going on. In the same ways, the agencies responsible for implementing new regulations under the environmental pollution acts were incapable of dealing with what was a wild west of corporate pollution. Underfunded, understaffed, and overpowered by the influential industries they sought to monitor, regulators were time and time again forced to settle for small fines or overlook corporate misconduct entirely.

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June 28, 2010

Oil Reaches Panama City Florida Beaches

Like you, I have been saddened and appalled by the recent oil spill disaster caused by BP. Now, the unthinkable has happened as tar balls have started washing up on our beautiful Florida beaches and oil has been spotted mere miles from our shore. The Gulf is the lifeblood of this region, both economically and environmentally, and, unfortunately, BP has forever changed our community.

The ripple effects are just only now being felt. First, it was the families who rely on the Gulf for their daily work. Now the economic damage has moved onshore. As the number of visitors to the Gulf has been dramatically reduced, every sector of our economy has suffered. From hotels, condominium owners, restaurants and all the different boating businesses to the hardworking Floridians who keep these businesses running, no one seems to be able to escape the oil's reach.

Under federal and Florida law, anyone who is economically or physically affected by the oil spill can recover damages. While BP has initiated a claims process, I have heard from many people who are frustrated with that process and do not feel they are being treated fairly. As of now, the details of the $20 billion escrow fund have not been fully announced. But it is clear that economists, accountants and other experts will be crucial in presenting claims and receiving full compensation for your losses.

A number of attorneys and law firms have come to our area seeking clients, and I am grateful that so many want to help. As a longtime resident of this community, I want to make sure that we receive the best representation we can. To that end, I am working with a group of attorneys from across Florida and the country to handle claims and any litigation that must be filed against BP if those claims are not paid in full.

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June 10, 2010

Gulf of Mexico Oil Spill - Problems with Oil Spill Litigation

During the last few weeks, I described the laws governing how to obtain compensation for oil spill damages. The oil in the Gulf of Mexico is moving nearer to us, and the coming chaos of churning waters during our hurricane season that just began makes further discussion about the oil problem imperative.

Oil hit Dauphin Island off Mobile and was 7 miles south of Pensacola just a week ago. As you've been hearing, it's closer to us now in Bay and Walton Counties. Let me come immediately to some critical points about what you must do and not do if you've lost income or property value because of the BP spill. I'm not going to mince words. We are at war with BP. Don't underestimate the situation. Despite what it says in pretty advertisements or in TV interviews, it's history has been sorry, and its PR people have been spinning the truth 24/7. It started by saying, "We'll pay all legitimate claims," whatever that means. Now, it's saying it's liability is limited. That's certainly clearer, and it serves to tell us that it's going to deny as many claims as possible. Its corporate survival depends on that.

So, what do you need to know? First, avoid the class actions that have been filed like they are the plague. The likelihood of their success is small. Why did some lawyers file class actions even though federal courts hate class actions and refuse to certify the classes when everyone's damages are so different? Only they can tell you, but one thought is that by filing class actions, they thought they could get publicity to attract other victims of the oil spill to become clients. Second, it may be important to avoid any suit that can be transferred to federal multi-district litigation in a court that is yet to be determined by the Washington-based judicial panel on multi-district litigation. It is likely that litigation in that forum will consume years. Look at the Exxon Valdez mess that has been going on in that kind of litigation for over twenty years. The people in Alaska still haven't been paid. Finally, lawyers of all types, criminal, real estate, and divorce, to name a few, are suddenly pronouncing their expertise in negligence or insurance law, the type law that truly governs these cases, and are filing cases in those forums.

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June 3, 2010

What To Do If You Have Oil Spill Damage

In the Florida Panhandle, most people have not lost money or had other damage caused by BP and Transocean from the oil spill in the Gulf. However, some have already suffered large economic losses. Whatever the kind of economic loss they have had, the legal remedies are the same, and some are far better to utilize than others. Some of the stories I get from people calling me for help are appalling.

For instance, the man who owns a nationally sold fishing magazine whose business is failing, because he can't get even his steady advertisers to put money into a magazine about Florida fishing. Or the restaurant owners in Louisiana who say their business has dropped to nothing, because tourists aren't going there or they won't order seafood, because they've heard it's unsafe. The local charter fishermen who have lost jobs since the fisheries have shut down. And the hotel and condo owners and their employees who have suffered due to cancelled rental reservations. All are in the same situation. They have economic losses that can be recovered by following the right steps. If they follow one of the wrong paths, they are likely to be tied up in litigation for years.

Let's examine the different possibilities for economic recovery. The federal law governing recovery of damage due to the oil spill is the Oil Pollution Act (OPA), 33 USC Sec. 2701 and subsequent sections. It provides for broad recovery of losses from responsible parties like BP, and it covers the economic losses of all the people who have called me as I described above. That gives you an idea of how broad the OPA is.

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May 24, 2010

Gulf Oil Spill Tragedy Eclipses Other Manmade Disasters

Never in the history of man has a manmade environmental disaster as tragic in its scope as the BP Gulf oil spill been seen. Cleanup of the Exxon Valdez oil spill in Alaska 20 years ago continues to this day. Only 8% of the oil has been recovered. The amount of oil in our Gulf of Mexico is expected to be 400% of the Alaskan spill. What happened, what don't you know yet about what happened, and if your property or business has been damaged by the oil or news of it in the Gulf, what is the best course of action for you to follow? Also, what dangers exist if you don't get it right? Wes Pittman at The Pittman Firm, P.A., Panama City, Florida, answers these questions below and will continue to update information and make recommendations in the weeks to come.

On March 20, one month before the blowout and ensuing explosion, BP was behind its drilling schedule. That day, it ordered faster drilling. The drilling operation had only one blowout preventer which was made by Cameron International Corporation in 2001. A huge machine with roughly 260 moving parts, it had been tested onshore but not fully at the 5000' depth at which the drillers hoped it would work. And it had been damaged a couple weeks before the blowout when a worker on the Deepwater Horizon accidentally bumped a lever. A rubber part from the preventer was seen floating beside the Deepwater Horizon and was reported to a supervisor who said, "No big deal." Also, the drilling site was not equipped with an acoustic switch to terminate the flow of oil in the event a blowout occurred. Acoustic switches are used throughout the world in places like Norway where governments require them. The U.S. does not. The only switch to end oil flow from the drill pipe below the Deepwater Horizon was a manual switch, requiring a human hand for activation, at the site of the explosion. Neither the manual switch or the blowout preventer had a backup system in place.

Where are we now? We have BP setting up claims offices along the coast, but are they baiting people to settle cheaply? They were found to be untrustworthy in Louisiana where they hired fishermen for cleanup but buried releases in the contracts. Various claims mechanisms exist for victims to follow outside the BP offices. The best and fastest mechanism, no matter where the damage occurred, may be through the Oil Spill Liability Trust Fund to avoid years of delay. People and businesses in a panic to file class action suits in various states will likely get bogged down in federal multidistrict litigation with stays and then get pennies on the dollar.

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May 3, 2010

Panama City Pittman Firm Heavily Engaged in BP Oil Spill Litigation

The unprecedented Gulf Coast disaster resulting from the underwater explosion of the Deepwater Horizon oil rig off Louisiana's coast on April 20 will destroy many jobs, businesses, and property values. As the rig burned nightmarishly for two days before it sank, oil spewed from beneath the Gulf of Mexico where the capping or cementing of a pipe had gone awry. Businesses and individuals affected by the spill are entitled to collect damages for loss of income and profits, and property owners who suffer devaluation of their property are entitled to compensation for the diminished value.

Commercial fishing has already been shut down in parts of Florida, Alabama, Mississippi, Louisiana, and Texas. Tourism is expect to drop dramatically as a result of which businesses that cater to tourists, like hotels, restaurants, water sports vendors, charter fishing vessels, scuba shops, and others will suffer. Businesses and individuals who have already had these losses or expect to have them, should immediately seek the advice of negligence attorneys whose knowledge is applicable to oil spill cases.

In this firm, Wes Pittman is an experienced mass catastrophe attorney who is representing clients in this disaster. As a part of his services, he offers free initial consultation and evaluation of oil spill claims.

As the massive oil spill moves through the Gulf of Mexico closer to shore, it is imperative that businesses and individuals know their rights and how to avoid common defenses advanced by defendants, like BP and Transocean, in similar cases. The magnitude of the problem is certain to be monumentally costly as over a million gallons of crude oil are released daily to kill fish and other wildlife. It is likely that commercial fishing and shrimping will be damaged for decades as oil damages the reproduction abilities of fish and shrimp and pollutes their breeding grounds. Property owners who rent their coastal condominiums and houses are in for substantial losses of income.

Under federal and state laws, individuals and businesses are entitled to monetary compensation for their losses. For example, under the Oil Pollution Act of 1990, those deemed responsible for the losses are liable to make these payments. Anyone, not just the owners of property, who loses profits or income as a result of the oil spill may make such a claim. You may call Mr. Pittman at (800) 784-9001 or locally in Panama City, Florida, at 850-784-9000 for assistance with this process.