[StBernard] Judge tells Murphy Oil to be more upfront with oil spill victims

[Westley Annis]

Judge tells Murphy Oil to be more upfront with oil spill victims
11/15/2005, 11:50 a.m. CT
By CAIN BURDEAU 
The Associated Press    

NEW ORLEANS (AP) - A federal judge has ordered the Murphy Oil Corp. to be
more transparent in its settlement talks with victims of an oil spill that
contaminated thousands of homes in St. Bernard Parish during Hurricane
Katrina.

Murphy has been trying to ward off a slew of class-action suits that were
filed after 1 million gallons of oil spilled into homes and canals in Meraux
after Katrina's storm surge lifted a massive storage tank off its base.

The El Dorado, Ark.-based company opened up five claims offices and started
contacting residents two months after the storm, offering people tens of
thousands of dollars for damage to their homes if they dropped out of the
lawsuits.

On Monday, U.S. District Judge Eldon Fallon agreed in part with lawyers who
argued that the company was taking advantage of the displaced and hard-hit
oil spill victims by providing them with misleading and false information.

The judge said the company needs to tell victims to consult a lawyer before
settling and that they would waive their legal rights in the case by
accepting money. Fallon also said Murphy cannot seek out residents who had
not previously contacted the company on their own or those who have lawyers.

Fallon also questioned Murphy's use of an environmental testing firm that
has said the spill has not created short-term or long-term risks. Plaintiffs
lawyers argued that Murphy tried to make it appear that the firm - the
Center for Toxicology and Environmental Health - was a government agency.
Fallon said Murphy needs to disclose that the firm is a paid consultant.

The U.S. Environmental Protection Agency has said that it is not safe to
live in the contaminated neighborhoods and that people should wear
protective clothing while working there.

The judge, however, did not agree with the plaintiffs on other points. The
plaintiffs, for example, argued that the talks between Murphy and residents
should be supervised closely by the court and that oral transcripts and
settlement documents be filed with the court.

Fallon on Monday also asked that lawyers in the case not speak with the
media, but stopped short of issuing a gag order. When contacted, lawyers for
Murphy and the plaintiffs refused to comment on Fallon's ruling.

Murphy has denied any wrongdoing in the case, but the plaintiffs claim that
Murphy was at fault for the spill.