In re Oil Spill

295 F.R.D. 112, 2013 WL 144042, 2013 U.S. Dist. LEXIS 4595
CourtDistrict Court, E.D. Louisiana
DecidedJanuary 11, 2013
DocketNo. MDL 2179
StatusPublished
Cited by23 cases

This text of 295 F.R.D. 112 (In re Oil Spill) 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, 295 F.R.D. 112, 2013 WL 144042, 2013 U.S. Dist. LEXIS 4595 (E.D. La. 2013).

Opinion

[117]*117 ORDER AND REASONS

[Granting Final Approval of the Medical Benefits Class Action Settlement]

CARL BARBIER, District Judge.

Before the Court is a motion (Rec. Doc. 7112) by BP seeking final approval of the Medical Benefits Class Action Settlement, as amended on May 1, 2012 (Rec. Doc. 6427-1). Also before the Court is Class Counsel’s memorandum in support of final approval of the Medical Settlement, which the Court treats as a motion for final certification of the Medical Benefits Settlement Class and for final approval of the Medical Settlement. (Rec. Doc. 7116.).1

1. Factual and Procedural History

On April 20, 2010, a loss of well control and one or more fires and explosions occurred on the Deepwater Horizon, which had been engaged in drilling activities in Mississippi Canyon Block 252 — the location known as “Ma-condo” — on the Outer Continental Shelf off the coast of Louisiana. The Deepwater Horizon sank to the ocean floor two days later. As a result of these events, oil began to discharge into the Gulf of Mexico. The flow of oil continued for three months before the well was capped on July 15, 2010. The MC252 Well was finally sealed with the completion of a relief well on September 19, 2010.2

A massive effort responded to the oil spill. As many as 90,000 response workers engaged in near-shore and offshore Response Activities in the Gulf of Mexico, working on approximately 6,500 marine vessels, including roughly 5,800 Vessels of Opportunity, a program in which BP contracted with vessel owners to assist in Response efforts. Response Activities included: (i) skimming oil from the surface; (ii) conducting approximately 400 controlled in-situ burns; (iii) placing more than 13 million feet of containment and sorbent boom; and — most relevant here — (iv) applying approximately 1.8 million gallons of chemical dispersants. Response workers also engaged in onshore activities [118]*118such as beach clean-up and wildlife restoration. The response is further discussed below (Part IV, infra).

The Deepwater Horizon Incident gave rise to hundreds of lawsuits, including putative class actions, with thousands of individual claimants for both personal injury and for economic loss and property damages. Four months after the incident, in August 2010, the Judicial Panel on Multidistrict Litigation (“JPML”) centralized all federal actions (excluding securities suits) in this District and assigned them to this Court pursuant to 28 U.S.C. § 1407. See In re Oil Spill of the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, 731 F.Supp.2d 1352 (J.P.M.L.2010). In its assignment order, the JPML observed that common factual issues among the suits supported their joinder, explaining that each proceeding “indisputably share[s] factual issues concerning the cause (or causes) of the Deepwater Horizon explosion/fire and the role, if any, that each defendant played in it.” Id. at 1354.

In Pretrial Order No. 11, this Court organized the pleadings and categorized the claims and issues by creating pleading bundles. (Rec. Doc. 569.) Relevant here is the “B3 bundle,” entitled “Post-Explosion Clean-Up Claims,” which encompasses “all claims, of any type, relating to post-explosion clean-up efforts ... as well as all claims for personal injury and/or medical monitoring for exposure or other injury occurring after the explosion and fire of April 10, 2010.” (Pretrial Order No. 25 (“PTO 25”), Rec. Doc. 983, ¶ 1.)

On October 8, 2010, the Court appointed the Plaintiffs’ Steering Committee (“PSC”) from numerous applicants, pursuant to a public application process. (See Rec. Doc. 506.) Pursuant to pretrial orders, on December 15, 2010, the PSC filed the B3 Master Complaint, (Rec. Docs. 881, 1812), which included “all claims for personal injury and/or medical monitoring for exposure or other injury occurring after the explosion and fire of April 20, 2010.” (PTO 25 at 2.) Short-form joinders adopting the B3 Master Complaint have been filed by more than 17,000 plaintiffs, many of whom are likely Class Members. In addition, many plaintiffs did not adopt the Master Complaint: approximately 780 of these individuals indicated that they were pursuing a personal injury/death claim and another 12,000 indicated that they are pursuing a claim for fear of future injury and/or medical monitoring. Numerous such plaintiffs are also likely Class Members.

BP and the other Defendants moved to dismiss the B3 Master Complaint. In September 2011, the Court partially granted these motions and ruled that plaintiffs’ claims were governed by maritime law and dismissed their state-law claims. (Rec. Doe. 4159.)

Phase One of a multi-phase trial was originally scheduled for February 27, 2011. The parties engaged in extensive discovery to prepare for that trial. (See Order, Rec. Doc. 8138 at 2). The Parties were also engaged, on a parallel track, in extensive arm’s-length negotiations over what would become the Medical Settlement. Over approximately ten months, counsel for Plaintiffs and BP engaged in intense negotiations, conducted in person and via telephone and web conferences. (Decl. of Andrew Bloomer, Rec. Doe. 7112-6, ¶¶ 2, 4, 6-62; Order, Rec. Doc. 7480, at 7 (“The Settlement Agreement was negotiated in good faith and at arm’s length over many months____The negotiations were extensive and highly contested.”; see also Rec. Doc. 7600.) Negotiating teams met or spoke nearly daily between late July 2011 and the filing of the Medical Settlement Agreement with the Court on April 18, 2012. (Bloomer Decl. ¶¶ 11-61; Decl. of Robin Greenwald, Rec. Doc. 7116-2 at 94, ¶ 3.) Magistrate Judge Shushan also supervised discussions related to key terms of the Medical Settlement Agreement. (Bloomer Decl. ¶¶ 39, 45, 49, 59; Greenwald Decl. ¶ 12.)

On February 26, 2012, the eve of the Phase One Trial, the Court adjourned proceedings for one week to give the parties additional time to reach a settlement, if possible. (See Rec. Doc. 5887.) On March 2, 2012, after the Parties informed Judge Shushan that they had reached an agreement in principle, the Court again adjourned the trial. (See Rec. Doc. 5955; see also Second Amended Pretrial [119]*119Order No. 41, Rec. Doc. 6592.)3 On April 16, 2012, the PSC filed a new class action complaint on behalf of thousands of individuals asserting bodily and/or personal-injury claims from alleged exposure to oil and/or dispersants arising from the Deepwater Horizon Incident, including Response Activities. (Plaisance, et al. v. BP Exploration & Production Inc., et al, No. 12-968.) On April 18, 2012, the Parties filed a joint motion for Preliminary Approval of the Medical Benefits Settlement, and Plaintiffs moved to certify the Class for purposes of settlement. (Rec. Doc. 6267.)4 After a hearing on April 25, 2012, the Court, on May 2, 2012, granted preliminary approval to the Medical Benefits Settlement and preliminarily and conditionally certified the Class for settlement purposes only. (Rec. Doe. 6419.)

In the Preliminary Approval Order, the Court directed that objections to the Settlement were to be filed with the Court by August 31, 2012, and it later extended that date to September 7, 2012. (Id. ¶¶23, 33; Order, Rec. Doc.

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295 F.R.D. 112, 2013 WL 144042, 2013 U.S. Dist. LEXIS 4595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-oil-spill-laed-2013.