Louisiana Fourth Circuit Court of Appeals Affirms Denial of Class Certification in Alleged Chemical Exposure Case

By Jessica Gladney

In Thomas v. Mobil Oil Corp., No. 2008-0541 (La. App. 4 Cir. 3/31/09), the Fourth Circuit affirmed the trial court’s denial of class certification against the defendants, Exxon Mobil Corporation and Chalmette Refining, L.L.C. The proposed class consisted of approximately 7,000 claimants from Algiers and St. Bernard, and the plaintiffs alleged personal injury and property damages from emissions of petrochemical facilities operated by the defendants over a fourteen-year period. The claims forms submitted did not specify dates that claimants allegedly suffered from any of the alleged damages, and the trial court concluded that the claims among the purported class members varied so greatly that the putative class representatives could not adequately represent the class. The Fourth Circuit recognized that the Louisiana Supreme Court’s holding in Ford v. Murphy Oil, U.S.A., Inc., 1996-2913 (La. 9/9/97), 703 So. 2d 542 was controlling and affirmed the trial court’s holding denying class certification. The court noted that the wide variances in geographic location, claimed exposure, and types and degree of damages claimed by the putative class members demonstrated that the claims were too individualized and the certification of the class should therefore be denied.

Local Louisiana tax assessor files suit against oil companies alleging underpayment of millions in ad valorem property taxes

"Coastal Parishes v. Big Oil" is the name of the website addressing the lawsuit just filed in federal court against Burlington & LL&E, for property taxes on equipment that is in onshore coastal waters as well as offshore waters within the three mile territorial limit. This lawsuit was filed by the Terrebonne Parish assessor claiming that the "big oil" companies committed fraud on their property tax reporting forms (the "LAT" forms) by (1) using a fraudulently low "replacement-cost-new-less-depreciation" values for equipment; (2) omitting certain pieces of equipment entirely; and (3) reporting certain wells as shut-in or stripper wells when they were, in fact, producing. The attorneys say that they have assessors from other parishes on board and that this is the first of many lawsuits to come against "Big Oil."

The link below is to the website established by the attorneys for the assessors. The complaint can be found on that website. It seeks (1) back taxes for some 10 years; (2) penalties for fraud; and (3) civil RICO penalties against the individual employee responsible for the LAT forms. It also contains complaints against LIOGA and the Louisiana Tax Commission, although neither is named in the complaint.
 

For more information, contact Robert Angelico, Jim Exnicios, or Cheryl Kornick.

www.paytaxesoil.com.

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Louisiana Legislature Considers Bill to Allow State to Pay Attorneys Using Contingency Fee Arrangement

By Kelly Becker 

The Louisiana legislature is currently considering House Bill 758 which would allow the Attorney General to pay up to a twenty-five percent contingency fee to outside attorneys to represent the State in litigation. Several industry groups, including the Louisiana Association of Business and Industry and the Louisiana Oil and Association, oppose the bill on the basis that it would lead to “frivolous” suits and target certain industries within the State. In the past, the State hired outside counsel to pursue claims for allegedly underpaid royalties and severance taxes and paid those outside lawyers on a contingency basis. Challenges were often raised to the contingency fee structure in those cases as violating the Louisiana Supreme Court’s decision in Meredith v. Ieyoub, 96-1110 (La. 9/9/97), 700 So. 2d 478, which held that through the terms of those contingency fee contracts, the Attorney General unconstitutionally usurped legislative authority by alienating to outside counsel State-owned property – a portion of any funds recovered in the litigation.

For more information on the proposed legislation, see www.nola.com/business/t-p/index.ssf/base/money-2

 

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Drilling Regulations for Haynesville Shale to be Discussed

By Jacob Credeur

The Caddo Parish Commission is preparing for a public hearing on May 21 where it is set to discuss proposed drilling regulations for operators in the Haynesville Shale. The commission is working on the set of ordinances in committee discussions and is seeking to acquire public input before taking action. The proposed regulations, as they currently stand, would cover everything from dust abatement, vibrations, odors, and noise to use of public water supplies and pipeline installation. Caddo Parish Attorney Charles Grubb has stated the intent of the proposed ordinances is to make certain that when drilling is done in populated areas “it is done in such a way that we don't lose quiet, peaceful possession of our property,”

For more information see: http://www.shreveporttimes.com/article/20090429/NEWS01/904290359/1060