[StBernard] Council opts out of class action

[Westley Annis]

Council opts out of class action
St. Bernard not part of Murphy spill suit 
Wednesday, May 31, 2006
By Karen Turni Bazile
St. Bernard/Plaquemines bureau 

The St. Bernard Parish Council will not join the federal class-action
lawsuit against Murphy Oil USA. 

 
The lawsuit stems from a leak at the company's Meraux refinery that dumped
more than 25,000 barrels of crude oil into nearby areas, including about
1,800 homes, mostly in Chalmette, in Hurricane Katrina's immediate aftermath
last year. 

The council's decision not to join the lawsuit came during a special meeting
Tuesday in which council members met in closed session to discuss the issue
with the parish government's legal representatives. They also reviewed
written advice from an outside environmental firm hired to help manage the
numerous environmental issues the parish is facing since the storm. 

"Government may have different damages than the homeowners, so our problems
may not be resolved in the ordinary course of a class-action suit," said
Alan Abadie, executive counsel to Parish President Henry "Junior" Rodriguez.


The council's vote to opt out of the lawsuit was unanimous. 

"Under the circumstances presented I feel St. Bernard Parish would do better
opting out of the litigation and reserving the right for its own litigation
in the event that the public property would be unable to be cleaned" by
Murphy, Council Vice Chairman Joey DiFatta said. 

The parish owns 12 public facilities in the footprint of land included in
the lawsuit as potentially damaged, according to a list presented at the
meeting. DiFatta said administrators had not yet asked Murphy to clean those
properties but would do so later this week. 

In January, U.S. District Judge Eldon Fallon consolidated 27 lawsuits
against Murphy Oil, and in February he issued a ruling that established an
opt-out procedure for residents who want to settle individually with the
company outside the lawsuit. Trial is to begin Oct. 2. 

Fallon appointed 22 attorneys to represent the plaintiffs. The establishment
of a class action means other people who sustained damage caused by the oil
spill may benefit from any settlement or judgment against Murphy Oil, even
if they are not listed as parties in the lawsuit. 

After the spill, Murphy opened claims offices to handle cases and began an
individual settlement program. After the judge certified the case as a class
action, Murphy asked Fallon to establish the opt-out process so the program
could continue. 

Under the new ruling, residents affected by the spill must opt out of the
class action before June 1. They may then settle with Murphy or file their
own lawsuit against the company. However, those opting out would not receive
any part of any monetary damages the class action generates if it is
successful, the ruling said. 

Notification outlining the procedure has been sent to residents of the
affected spill area. 

Information on the lawsuit is available at the court's Web site,
www.laed.uscourts.gov, by following the "Murphy Oil" link. 

. . . . . . . 

Karen Turni Bazile can be reached at kturni at timespicayune.com or (504)
826-3335.