[StBernard] Murphy to continue oil-spill settlements despite judge's order

[Westley Annis]

Murphy to continue oil-spill settlements despite judge's order
BY EDWARD KLUMP

Posted on Friday, March 31, 2006

URL: http://www.nwanews.com/adg/Business/150389/


Murphy Oil Corp. says it plans to continue settling with people who opt out
of a class-action lawsuit over an oil spill in Louisiana despite a judge's
order that sets aside settlement money for legal fees and costs in the court
case. 

"We're continuing the program for those that opt out of the lawsuit only,"
said Mindy West, a spokesman for the El Doradobased company. 

West added that people within the class certification boundary lines drawn
by U. S. District Judge Eldon Fallon may "contact us, and then if they test
positive for our oil on their property then they are included in our
settlement program." 

George Frilot, an attorney for Murphy, said he did not agree with the
judge's decision regarding people who want to settle with the company and
have retained a lawyer. 

"It seems to me to be not proper for a court to say to the public that they
can't settle their case without paying some money to the class-action
lawyers," Frilot said. 

Murphy intends to comply with the order even though it is not happy about
it, West said. 

A spill of about 1 million gallons of oil from the Meraux, La., refinery
occurred in the wake of Hurricane Katrina, which struck the Gulf Coast on
Aug. 29. Some of the oil leaked into the sur- rounding area. The plaintiffs
argue in court filings that Murphy was negligent, but the company has denied
that. 

Attorneys for Murphy said in January that the company had paid out more than
$ 50 million in settlements. That didn't include the more than $ 13 million
it paid for cleanup of public property and more than $ 4 million spent on
private-property work. That was before Fallon certified the class of
plaintiffs. 

Claiborne Deming, Murphy's president and chief executive officer, said in
February that the certified area "covers about 2 square miles" and "up to 6,
000 residences." That includes more than 2, 000 residences with which Murphy
has settled, he said. It's not clear whether businesses are part of that
total. 

Fallon issued an order earlier this week to set aside 12 percent of the
gross of any settlements. The money will go into a fund that could be used
for legal fees and court costs. 

A plaintiffs' steering committee had asked that 22 percent be put aside - 15
percent for class counsel's attorneys' fees and 7 percent for costs.
Attorneys for Murphy had opposed that request, saying the committee should
not receive anything from people who voluntarily settle with Murphy. 

Fallon ordered that 10 percent be set aside for fees and 2 percent for
costs, totaling 12 percent. The order involves pending or future cases as of
earlier this week, and it involves only people who have counsel. 

Joseph Bruno, an attorney for the plaintiffs, said Fallon's order was fair
and reasonable. Bruno said the 10 percent would come out of what the
settler's attorney would get, while the 2 percent would come from what the
settler would get. 

Murphy has lost a petition to appeal the class certification, and a trial is
scheduled to begin in New Orleans on Aug. 14. The company has said the 125,
000-barrel-a-day refinery at Meraux is expected to restart at some capacity
in April. 

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