Big Oil

June 25, 2008

Supreme Court Reduces Punitive Damages to 1/10th of What the Jury Thought Was Fair for the Exxon Valdez Oil Spill

Cross posted from The Pop Tort by Amanda

Right now the folks at Exxon Mobile are probably writing out their 'Thank You' cards to the U.S. Supreme Court Justices.  Even though the company posted a "disappointing" $10.9 billion profit in the first quarter of 2008 (the second highest U.S. corporate profit ever – the highest being themselves in 2007) the U.S. Supreme Court ruled today that the company only has to pay $500 million (nope, I didn't forget a zero) in punitive damages to the 30,000 victims of the Exxon Valdez oil spill.

Okay, so in 1994, when a jury in Alaska awarded the victims $5 billion, the punitive damages award really might have punished the company for causing this disaster.  In 1994, $5 billion represented a year's profits for the oil company.  In 2006, the award was cut down to $2.5 billion and only represented "about three weeks of Exxon's current [2006] net profits."  So, the current $500 million damage award is what?  Well, according to the New York Times, Exxon Mobile earned more than $1,287 of profit for every second of 2007.

At that rate, it only took them four and a half days to pay off this court's punitive damages judgment.

June 19, 2008

Chevron CEO Talks Gas Prices

Remember how a while back, when gas in Chicago was only $4 per gallon, Exxon CEO Rex Tillerson appeared on TV talking about Big Oil’s (non)role in curbing rising gas prices?  Chevron’s chief oilman did the same thing with Wolf Blitzer the other day.  He sounded a lot like Tillerson.  (Watch the clip here)  Consumers are getting fed up with Big Oil's misleading solutions to this crisis, especially when they come from an industry that has such an impact on our daily decisions.  Whatever happened to corporate social responsibility?

May 15, 2008

Exxon CEO talks gas prices

Rex Tillerson, CEO of Exxon Mobil, talked with Matt Lauer this morning about energy efficiency and consumers struggling with high gas prices.  Actually, when Lauer asked him what Exxon was doing to control gas prices, Rex was shockingly candid about what his job is: to please shareholders, not consumers.  He even sounded defensive, saying his shareholders enjoyed only an "average" profit margin last year.  That’s putting lipstick on an ugly pig, since Exxon still reaped record profits of over $40 billion. Meanwhile, Rex got a 25% pay raise and a $20 million bonus.  And how much do you suppose Exxon has spent so far on their upcoming Supreme Court case against victims of their massive oil spill?

Of course it’s understandable that corporations are out to make money.  That’s fine.  But as Lauer points out, most corporations don’t directly impact people’s livelihoods like Exxon does.  People can't just stop buying gas.  I think most would agree that somewhere Exxon needs to draw the line and make an effort to ease the burden on people.  Sadly, Rex never entertains this idea.

Watch:

April 22, 2008

Earth Day, Environmentalism and the Civil Justice System

Today is Earth Day 2008!  On Earth Day, we are bombarded by messages that talk about the need to protect and conserve our planet. We hear about groups of school children starting recycling programs in their communities, or new technologies that create less pollution or assists us with cleaning up old problems.  What you don't usually hear about is one of the most effective tools we have in this country to protect our environment: The Civil Justice System. 

A report released earlier this year, by The Center for Justice & Democracy, details many situations where private citizens brought civil cases and made polluters clean up their mess.  One of the cases highlighted is the "Love Canal" case:

In the early 1970's, a young mother named Lois Gibbs became concerned by her children's recurring illnesses, including rashes, respiratory difficulties and a serious blood disorder.  She began talking to her neighbors about it, and her informal survey suggested that there were a high number of babies with birth defects in homes near Love Canal on the outskirts of the City of Niagara Falls, New York. This spurred the State Department of Health to study the area.

Between 1942 and 1952, Hooker Chemicals & Plastics Corp. buried more than 21,000 tons of hazardous chemical wastes in a 3,000-feet long trough called Love Canal.  Over the next 20 years, chemicals from the site seeped into people's basements, contaminating underground sewer pipes and soil, and polluting the indoor air. The Department found an unusually high number of miscarriages among women living near Love Canal, and an elevated number of birth defects - including cleft palate, deformed ears and teeth, and other significant abnormalities. Approximately 950 families were evacuated from a 10-square block surrounding the landfill.

By February 1982, more than 600 personal injury cases had been filed against Hooker (which was bought by Occidental Chemical Co.).  In January 1985, 1,336 residents agreed to a $20 million settlement with Occidental that established a $1 million medical trust fund.  Thirteen years later, the last of the Love Canal cases brought by 899 victims settled for $6.75 million.8 Funds from the settlements have helped pay medical expenses of former Love Canal residents who have illnesses that have been linked to the contamination.

This case spurred passage of the Comprehensive Environmental Remediation, Liability and Compensation Act (CERCLA), also known as “the Superfund law,” which mandates cleanup of toxic sites.  In March 2004, the federal EPA declared cleanup at the site complete, despite lingering concerns of some community leaders, and removed Love Canal from the “Superfund list” of hazardous waste sites.

Citations Omitted.  Click here to view full report.

Because of cases like Love Canal, and others, many individuals have gotten justice and redress.  However, these cases not only benefit them, but benefit all of us.  While the civil courts have been a major tool in the fight for environmental justice and accountably it is under attack by the organizations that commit much of the harm: Big Business.

Big Business and their "tort reform" movement has taken aim at the civil justice system, to limit the access to justice for millions of Americans.  Not only have they tried to limit access, but through lobbying efforts they have tried (and succeeded) in passing legislation that limits their liability (and accountability) when they do harm.  We need to send a clear message to our legislators that we need open access to our civil courts to hold wrongdoers accountable for their misdeeds. 

On this Earth Day let us remember how, among many other tools, the Civil Justice System has helped protect people and the environment. 

April 15, 2008

Another Record Year for Tort "Deform" Lobbying

Unfortunately, we in Illinois know this scenario all to well. 

Cross posted from The Pop Tort by Amanda,

If there were a group of people that shouldn't be afraid of the purported recession, it would probably be lobbyists.  We are not saying all lobbying is bad, but just take a look at who outspent the rest in their efforts to have their way with Washington:   

According to information released last week from the Center for Responsive Politics, the U.S. Chamber of Commerce, the tort deform "champion", was victorious this past year in spending more money ($52.8 million) than any other lobbying group. 

The industries that dolled out the biggest of the big bucks: drug and health care product companies ($227 million) and insurance industries ($138 million).

February 26, 2008

Exxon oil: slick for too long

Can you believe the ’89 Exxon-Valdez oil spill is still making headlines after almost two decades?

In 1994 thousands of Alaskan residents whose lives were rattled by the disaster won a battle against Exxon. They never got the compensation they were awarded though, as Exxon still hasn’t ponied up the damages they were ordered to pay as punishment. When Exxon’s appeal finally hits the Supreme Court tomorrow, Justices will decide whether their punishment was excessive. What is excessive to me is that they’ve spent the better part of my life avoiding responsibility for the accident. The Minneapolis Star-Tribune quoted a fisherman who summed up the sense of anxiety.

"I really wonder, what do you do if you don't get a just decision out of the Supreme Court," he said on his boat Prince William. "I mean, there's no other court to take it to. What do you got left, really? Anarchy?"

Between this and the "hot fuel" issue (see our last post) this has been a big couple of weeks for Exxon. Our officials in the civil justice system have some chances to really hold Big Oil accountable. Let’s hope this tragedy is settled once and for all.

February 24, 2008

"Hot Fuel:" The Big Oil Scam

If you don't know what "hot fuel" is and why it is costing consumers billions of dollars then read on and watch this short video.

I must admit that it is the first time that I am hearing about this problem and am outraged that oil companies can bilk billions from American consumers. 

The controversy centers around the oil industry's "century-old practice of pricing gasoline on a standard of 60 degrees." Consumers in states where the average temperature is above the standard say that this practice is bilking them out of a lot of money, because "[a]s temperatures rise during warmer months, the gasoline expands, meaning customers get less energy per gallon."  In Canada, where the oil companies were losing money because the average temperature is less than 60 degrees, they passed laws allowing for prices at the pump to reflect changes in temperature.  here in the U.S., Congress has estimated this practice to cost consumers $1.5 billion annually (others have a much higher number than this), but have not taken action to protect gas purchasers.

Another slap in the face to consumers is, when companies sell gas to each other and other large industries, like the airlines, they account for changes in temperature. So why can't consumers have the same benefit? 

The Kansas City Star has been writing about this issue since 2006 and the Foundation for Taxpayer & Consumer Rights (FTCR), and their Oil Watchdog project, have also been spreading the word.  It is slowly gaining national attention, but what is driving the attention now is a class action suit made up of consumers from 26 states, Washington, D.C. and Puerto Rico.  Most recently, a federal judge in Missouri has allowed the case to move forward on all counts. (Click here to read the judge's opinion.) The case will move into the discovery phase, or better known as the "who, what, when, where" chapter.  Independent truckers are pleased by the judges ruling because they know so well the cost of this scam to their bottom line.  They have said,

America's truckers are closely watching the progress of this case. They want, and deserve to get the same miles per gallon from every fill-up. Especially since they are having to buy an extra 200 gallons, or so, every year due to hot fuel...

While the defendants say they are in full compliance with the law, ExxonMobile have been putting stickers on its pumps in California and Arizona about fuel energy being "affected by temperature" as a tactic to try and fend off the class action lawsuits against "hot fuel" sales.

The plaintiffs are looking forward to see how the defendants, who have known about this issue since the 1920s, but have managed to keep it under wraps until now, handle explaining this to the court and public.

Since Congress is not acting, I am glad that we still have the civil justice system to turn to in order to fight this powerful and wealthy industry.

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