Legal Radar

SC Refuses Spill Case; BP Ends with Settlement

The Supreme Court maintained a settlement for the class action case of the Deepwater Horizon explosion. This rejects BP PLC’s request of getting justices to review claims of payouts that went to businesses that didn’t suffer any damage from the Gulf of Mexico oil spill in 2010.

The firm believes the settlement it took in 2012 were very loosely administered, allowing some businesses to rake in payments even without proof that they were financially affected by the spill.

Early this year, the 5^th U.S. Circuit Court of Appeals in New Orleans shot down BP’s arguments in a 2-1 ruling with the firm agreeing to the terms in exchanging to avoiding trial and efficient ways to resolving the claims.

BP indicated the class action rules excludes payments to entities that weren’t affected by the oil spill. The SC early this week turned down the firm’s challenge to the ruling.

BP is still concerned the program is making payments to claims not related to the disaster

Court of Appeals Makes Reconsideration of Conflict Minerals Ruling

After striking down a ruling early this year that require publicly traded American companies to reveal as whether or not their products consist of conflict materials from Central Africa, a federal court of appeals may have second thoughts on the decision made.

The SEC’s “conflict minerals” rule imposed obligations for companies in the utilization of gold, tin, tungsten, and tantalum linked to armed conflicts within the Democratic Republic of the Congo.

A panel of judges of the U.S. Appeals Court for the District of Columbia Circuit earlier this year maintained a majority of the regulation, but made a ruling indicating that the disclosure requirement is in violation of the First Amendment since it forces companies to reveal the “blood on its hands.”

The results was observed to be a huge boost on SEC’s conflict minerals case. Early this week, the court of appeals indicated it would now make a reconsideration of the minerals rule.

The aim of the regulations is to prevent violence by forcing companies to avoid the use of conflict minerals.

Hyundai and Kia Make Payments on False Fuel Claims

Hyundai Motor Co. and Kia Motors Corp. aren’t just facing an embarrassing blunder on the gas consumption regarding their vehicles but they’re also paying a price on false fuel claims.

Wrapping up a 2-year probe by the U.S. Environmental Protection Agency and the Justice Department, the firms made an agreement to pay an estimated total of $300 million for making false statements on fuel efficiency for their one million-plus vehicles. The settlement is said to be the biggest penalty yet in allegedly violating the Clean Air Act.

The EPA said that such false statements ranged between 1 to 6 miles per gallon. Based on fuel economy tests, engineers from Hyundai and Kia claim to have picked favorable results rather than the average ones from its numerous tests, according to the U.S. EPA.

Based on the settlement, both Korean manufacturers will give up 4.7 million greenhouse gas credits they created from the U.S. corporate average fuel-economy system from their 2013 and 20212 vehicle models.

Court of Appeals Adds Life to BASF Fraud Case

The 3^rd U.S. Circuit Court of Appeals brought to life a fraud case against a BASF SE unit and a NY-based law firm, Cahill Gordon & Reindel LLP, who defended it for years regarding the asbestos litigation --- reversing a lower court judge who shot down the supposed class action.

The plaintiffs, those representing alleged asbestos victims, said that Cahill and Cahill have gathered and destroyed or kept evidence hidden of products contaminated with asbestos made by Engelhard, BASF’s predecessor, to evade any legal actions and enforced swift settlements.

The decision from the 3^rd Circuit has left BASF and Cahill to shield itself from a likely class action that accuses the firm of fabricating the harmful material, then preventing victims from having their day in court.

Plaintiffs alleged the defendants of taking part in a scheme targeted at the integrity of the judicial process which includes destruction of evidence.

New attorneys for BASF discovered and created a group of old documents, which allegedly has been stored in a Cahill facility. Such documents led to the alleged class action.

Mississippi Power Settles with Sierra to Halt Coal Litigation

Mississippi Power will be converting to natural gas from coal or end multiple plant units in Greene County, Alabama, and South Mississippi, as part of a settlement to halt litigation regarding the coal power plant construction in Kempler County.

The company and Sierra Club made a recent announcement of ending any litigation regarding the coal matter.

The settlement will significantly aid in cleaning the air in Mississippi, offer aid to individuals affected by increased rate with Kemper, and push Mississippi to a future where business and residential owners can set up clear air equipment.

The Sierra Club will end regulatory disputes before the Public Service Commission and pending appeals in both state and local courts. It’ll also stop a pending appeal before the Mississippi Supreme Court on whether or not it’s constitutional for Mississippi Power to recover payments before the Kemplar plant resumes.

The changes are required to comply with the latest federal environmental standards.

Yeager Airport on Upgrades and Legal Battle

Officials from the Yeager Airport recently announced the progress of the terminal upgrades, runway extension construction, and the airport’s legal clash with Freedom Industries.

Rick Atkinson, the Airport Director announced that Mark Nowak, a Clark Hill lawyer, will be acting as lead counsel for the airport’s defense against a suit which alleges Yeager Airport for not appropriately containing a runoff from the runway extension. The runoff was said to have contaminated the main water supply which led to a 9-day water ban.

Trig Salsbery, a board member and a Charleston attorney, believes when the facts are shown in court, Yeager Airport will be freed from being the main culprit of the issue.

The board also analyzed bids for the terminal upgrade consisting of a new boarding bridge and upgrades on several bridges. The upgrades would include AC units and power per bridge, which would result to electricity and hot/cold air circulation.

The upgrades are estimated to be around $2 million.

Turned Down Mine Application Pushes County to Litigation

It’ll be the first legal battle to Lee Plan’s Limerock Mining Overlay, which prevents new mines from operating along Corkscrew Road, as opposed to assigning future mining operations in the Alico Road area. The overlay, known to be Map 14, was taken in 2010 and completely deployed in February 2012 after winning a legal battle.

FFD and Troyer Brothers Evacuation were denied mines from the Map 14 restrictions, but multiple mining applications have been shot down in the DR/GR before as the county was reviewing the long range mining vision.

At present, the county is being sued by Estero Group, Ltd., based on an Inverse Condemnation claim for a denied mine application back in 2008. Another firm, GolfRock LLC, is looking for a declaratory judgment against the county, making room for a future suit regarding its mine application in 2005.

Both groups are active in lobbying for environmental matters in Florida and have testified against FFD on its rezoning hearing. They also showed support for the county on its defensive stand of the overlay map.

Miller Targeted for Claiming Loyalties in Sinkhole Case

A client of Kean-Miller, Vulcan Materials, is suing its former law firm partner at a district court in Baton Rouge. Vulcan Materials claims Kean Miller breached its responsibilities to Vulcan while collaborating with Texas Brine, the firm who was blamed for the recent Bayou Corne sinkhole.

Vulcan implicated Miller for failing to offer advice to the firm on the surfacing of sinkhole or the fact that Vulcan was accused by Texas Brine for contributing to such cause. The lawsuit indicate that increased responsibility to one client over duties owed to another is the major issue of the conflict of interest.

Texas Brine gave the Vulcan plant with brine from its operations situated near where the sinkhole surfaced. Texas Brine claimed Vulcan was part of the decision-making that may have led to the failed well cavern.

Without offering an estimate, Vulcan is seeking costs regarding new representation on other issues, the cost of Miller’s conduct probe, significant effect on Vulcan’s litigation status, and among other things.

$15 Million Hanging on Louisiana Spill Litigation

Lawmakers made an additional $15 million last Friday to the attorney general’s budget for payment on the ongoing Louisiana litigation --- triggered by the Gulf oil spill in 2010.

Without funding, the office of Attorney General Buddy Caldwell mentioned its case would go to a halt in the fiscal year which began this July 1.

To cover legal work fees, the legislature’s budget committee went for funding from a side fund which included taxes, penalties, and costs paid by the oil industry.

However, the fund doesn’t feature the complete amount required for litigation costs, so the treasury will need to borrow from other areas of state funds to keep tabs on the attorney general’s costs until the cost balance catches up.

Louisiana filed a suit against BP, owner of a well that spilled over 200 million gallons of oil into the Gulf, which caused significant economic and environmental damage to the state. Claims are subject on the current litigation.

Close to $45 million were spent prior to the latest cash infusion.

Quasar Lawyer Hinting at Wheatfield Litigation

A Quasar Energy Group attorney recently marked the Town Board on what seems to be warnings of a suit if it passes a law of banning biosolids use within their area.

Paul Keneally, an attorney from the Rochester-based Underberg & Kessler law firm, said Quasar already gave numerous material to the town defending the methods it utilizes to transform food waste and sewage sludge into methane gas.

The product from the digestive process Quasar utilizes at its Liberty Drive plant in rich nitrogen liquid called, “equate.”

The Milleville Brothers has as state farm permit to scatter the material on several fields it possesses around town but is pledging not to due to alleged health problems from fertilizer use.

Keneally warned that interfering with Quasar’s business is considered confiscation of property without due process or essentially a violation of NY’s law shielding vested interests.

A proposed law allows for current equate-related business to continue its operations.