[StBernard] St. Bernard council rejoins Murphy suit

[Westley Annis]

St. Bernard council rejoins Murphy suit
Parish could collect $1 million for spill 
Wednesday, January 24, 2007

>From staff reports


The St. Bernard Parish Council has voted to opt back into the class action
lawsuit against Murphy Oil: an action that is expected to net the parish a
$1 million payout. 

Parish Attorney David Paysse advised the council to opt back in the lawsuit
because the payment -- part of an overall $330 million settlement proposal
-- was reasonable and that being a member of the class action offered an
expedited manner for the parish to get paid for the damages. 

"We have been offered a very reasonable offer to settle," Paysse told the
council at a special meeting Monday in Chalmette. 

The class action lawsuit stems from a spill of 1 million gallons of oil from
a storage tank at the refinery during Hurricane Katrina. More than 6,500
owners and renters are part of the lawsuit. 

Councilman Lynn Dean said he opposes accepting the money because he thinks
the oil spill was the fault of the hurricane and the levee failures, not of
the oil refinery. 

"Explain to me why we should get $1 million from them," Dean said. "Murphy
Oil did not do anything wrong in this parish." 

But Paysse disagreed. 

"There is some evidence of possible fault, and there is some evidence of no
fault. That's why you settle." 

The council voted 5-1 to opt back into the lawsuit and to file a "proof of
claim," which is due by Jan. 31. 

Council members Mark Madary, Judy Hoffmeister, Craig Taffaro, Joey DiFatta
and Tony "Ricky" Melerine voted to get back into the class action. Dean
voted no. Councilman Kenny Henderson didn't attend the meeting. 

At an early January hearing on the proposed settlement, a federal judge said
he was inclined to approve it. U.S. District Judge Eldon Fallon said the
proposal has been supported by the majority of affected residents and
appears to be fair, reasonable and adequate. 

Fallon said he would issue a formal decision in writing but did not say when
it would be issued. 

If Fallon gives the settlement a go-ahead and no appeals are filed within 37
days, Murphy could start cutting checks and buying property sometime next
month, a refinery spokesman has said. Members of the class action face a
Jan. 31 deadline to file claims to get a share of the settlement fund. 

The settlement area is divided into four zones, depending on how much damage
was assigned to each, including a zone where the refinery has offered to buy
properties. 

Attorneys for the class action said the settlement requires Murphy to make
sure the affected area is thoroughly cleaned and puts no cap on what the
company spends to achieve that goal. 

The area in the lawsuit is bounded roughly by Paris Road on the west, St.
Bernard Highway on the south, the 40-Arpent Canal levee on the north, and
Jacob and Mary Ann drives on the east.