In re Oil Spill by the Oil Rig "deepwater Horizon"

970 F. Supp. 2d 524
CourtDistrict Court, E.D. Louisiana
DecidedSeptember 6, 2013
DocketApplies to Nos. 10-4239, 10-4240, 10-4241; MDL No. 2179
StatusPublished
Cited by2 cases

This text of 970 F. Supp. 2d 524 (In re Oil Spill by the Oil Rig "deepwater Horizon") is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Oil Spill by the Oil Rig "deepwater Horizon", 970 F. Supp. 2d 524 (E.D. La. 2013).

Opinion

ORDER & REASONS

[As to the Cross Motions for Summary Judgment regarding the claims by the Mexican States]

CARL BARBIER, District Judge.

Before the Court are cross motions for summary judgment by the Mexican States of Veracruz, Tamaulipas, and Quintana Roo (collectively, “the Mexican States”) and BP, Transocean, Halliburton, and Cameron (collectively, “Defendants”).1 Generally stated, these motions raise the issue of whether the Mexican States held a “proprietary interest” in certain property allegedly damaged by discharged oil, such that their tort claims may proceed under general maritime law. For the reasons set forth below, the Court finds the Mexican States do not meet this threshold. Accordingly, the Court will grant the Defendants’ motions and deny the Mexican States’ motion.

I. FACTUAL AND PROCEDURAL BACKGROUND

On April 20, 2010, a blowout, explosion, and fire occurred aboard the mobile offshore drilling unit DEEPWATER HORIZON as it was preparing to temporarily abandon a well, known as Macondo, that it had drilled on the outer continental shelf approximately fifty miles south of the Louisiana coast. After burning for two days, the HORIZON sank, fracturing the marine riser that had connected it to the Macondo Well. Consequently, millions of gallons of oil discharged into the Gulf of Mexico before the well could be successfully capped on July 15, 2010.

Cases arising from these events eventually were consolidated before this Court pursuant to 28 U.S.C. § 1407 as Multidistrict Litigation 2179 (“MDL 2179”). In September of 2010, the Mexican States [526]*526each filed substantially similar complaints in the Western District of Texas against BP (the well owner and operator and block lessee), Transocean (owner of the DEEP-WATER HORIZON), Halliburton (cement contractor), Anadarko (co-owner and co-lessee with BP), and Cameron (manufacturer of the HORIZON’S blowout prevent-er) for damages they allegedly incurred or would incur as a result of the oil spill. These damages included the costs of monitoring and preparing to respond to the oil spill; contamination and injury to the waters, estuaries, seabed, animals, plants, beaches, shorelines, etc., of the Mexican States; lost taxes, fees, etc., due to reduced fishing activity and fishing-related industries; lost taxes, etc., due to diminished tourism; and the net costs of providing increased public services. (See Veracruz Am. Compl. ¶ 55). The Mexican States’ cases were transferred to this Court and consolidated with MDL 2179. (See State of Veracruz v. BP, PLC, et al., No. 10-4239; State of Tamaulipas, v. BP, PLC, et al., No. 10-4240; State of Quintana Roo v. BP, PLC, et al., No. 10-4241).

In 2011, the Defendants moved to dismiss the Mexican States’ complaints under Federal Rule of Civil Procedure 12(b)(6). On December 9, 2011, the Court partially granted these motions and dismissed the Mexican States’ claims under the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq., as well as their claims of nuisance and negligence per se. (Order p. 12, Rec. Doc. 4848, 835 F.Supp.2d 175, 182 (E.D.La. 2011)).2 The Mexican States’ claims of negligence and gross negligence were preserved, but only to the extent oil caused a physical injury to the Mexican States’ proprietary interests. Id. The “physical injury to a proprietary interest” requirement stems from the Supreme Court’s decision in Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927), as interpreted- by the Fifth Circuit Court of Appeals in Louisiana ex rel. Guste v. M/V Testbank, 752 F.2d 1019 (5th Cir.1985) (en banc).

The Court subsequently established a schedule for the parties to conduct limited discovery and file motions on the issue of whether the Mexican States hold the requisite proprietary interest in the property allegedly damaged by oil. (Rec. Doc. 7367). Those motions have been fully briefed, argued, and submitted for decision. Defendants urge that, assuming oil in fact damaged Mexican waters, shores, wildlife, and other natural resources,3 the Mexican States do not possess a proprietary interest in these things and their claims should be dismissed. The Mexican States argue that Robins Dry Dock does not apply to their claims, and, alternatively, that they hold the requisite proprietary interests.

II. SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate when “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (citing former Fed.R.Civ.P. 56(c), now Fed.[527]*527R.Civ.P. 56(a)); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994). When assessing whether a dispute as to any material fact exists, the Court considers “all of the evidence in the record but refrains from making credibility determinations or weighing the evidence.” Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398 (5th Cir.2008). All reasonable inferences are drawn in favor of the nonmoving party, but a party cannot defeat summary judgment with conclusory allegations or unsubstantiated assertions. Little, 37 F.3d at 1075. A court ultimately must be satisfied that “a reasonable jury could not return a verdict for the nonmoving party.” Delta, 530 F.3d at 399.

If the dispositive issue is one on which the moving party will bear the burden of proof at trial, the moving party “must come forward with evidence which would ‘entitle it to a directed verdict if the evidence went uncontroverted at trial.’ ” Infl Shortstop, Inc. v. Rally’s, Inc., 939 F.2d 1257, 1263-64 (5th Cir.1991) (citation omitted). The nonmoving party can then defeat the motion by either countering with sufficient evidence of its own, or “showing that the moving party’s evidence is so sheer that it may not persuade the reasonable fact-finder to return a verdict in favor of the moving party.” Id. at 1265.

If the dispositive issue is one on which the nonmoving party will bear the burden of proof at trial, the moving party may satisfy its burden by merely pointing out that the evidence in the record is insufficient with respect to an essential element of the nonmoving party’s claim. See Celotex, 477 U.S. at 325, 106 S.Ct. 2548.

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Related

Veracruz v. BP, P.L.C.
784 F.3d 1019 (Fifth Circuit, 2015)
In re: Deepwater Horizon
Fifth Circuit, 2015

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