Kelecseny v. Chevron, U.S.A., Inc.

262 F.R.D. 660, 2009 U.S. Dist. LEXIS 115863, 2009 WL 4262603
CourtDistrict Court, S.D. Florida
DecidedNovember 25, 2009
DocketNo. 08-61294-CIV
StatusPublished
Cited by10 cases

This text of 262 F.R.D. 660 (Kelecseny v. Chevron, U.S.A., Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelecseny v. Chevron, U.S.A., Inc., 262 F.R.D. 660, 2009 U.S. Dist. LEXIS 115863, 2009 WL 4262603 (S.D. Fla. 2009).

Opinion

ORDER

CECILIA M. ALTONAGA, District Judge.

THIS CAUSE came before the Court Motion by Plaintiff, Ken Terrell (“Terrell”), for Class Certification (“Motion”) [D.E. 443],1 filed on October 9, 2009. The Court has carefully considered the parties’ written submissions, oral arguments presented on November 9,2009, and applicable law.

I. BACKGROUND

This case arises from damage to boats in the State of Florida allegedly caused by ethanol blended gasoline, commonly known as E10. The E10 gasoline currently available in Florida is a blend of ethanol-free hydrocarbon gasoline and approximately 10 percent fuel-grade ethanol. {See Certain Defendants’ Memorandum in Opposition to Class Certification {“Opposition”) [D.E. 423] at 4). Recent federal and state legislation require that ethanol usage be expanded, and that gasoline contain 9 to 10 percent ethanol by December 31, 2010. (See id.). During 2008 and 2009, the amount of ethanol-blended gasoline in the State of Florida increased. (See id.). In Florida, a statutory exemption to the 10 percent mandate exists for fuel sold for use in boats and other watercraft. (See id.). Although fuel sold for use in watercraft is not prohibited from containing ethanol, it is not required to contain the 10 percent level by 2010. {See id.).

Terrell, the only remaining named Plaintiff (see [D.E. 387]), sues several Defendant gasoline manufacturers who have produced and/or marketed the ethanol blended gasoline (E10) used by Plaintiff and the proposed class members for use in their boats and similar watercraft in Florida without adequate warnings to consumers. {See Third Amended Complaint (“Third Am. Compl”) [D.E. 141] ¶¶ 8, 9). While Defendants do not refute that E10 can cause damage to boats (see Plaintiffs Motion for Class Certification (“Motion”) [D.E. 443] at 1; Opposition at 6), Defendants maintain that Plaintiff vastly overstates the extent of the problem. (See Opposition at 6). Specifically, Terrell asserts that E10 can cause the following problems:

• difficulty starting the engine or rough engine operation
• engine overheating
• engine fires
[665]*665• bent push rods
• damaged pistons
• vapor lock
• fouled spark plugs
• fuel leaks
• black carbonatious covered engine valves
• reduced octane
• destruction of elastomers, o-rings, and other fuel system components
• corrosion of aluminum tanks
• corrosion of metals
• degradation of fiberglass tanks and resins 2
• damage to fuel filters
• phase separation and damages related thereto

(See Motion at 7).

Terrell further asserts that Defendants were well aware of these problems. (See id. at 5). Terrell claims Defendants had special measures in place to be sure their storage tanks would be compatible with E10 and its known dangerous propensities, particularly regarding phase separation. (See id.). He points to numerous publications by the ethanol and petroleum industry indicating Defendants were attempting to avoid problems caused by ethanol within the industry. For example, the American Petroleum Institute issued a report stating, “[fiberglass reinforced plastic tanks may or may not be suitable for storing ethanol or ethanol blend. Resins have changed since fiberglass reinforced plastic tanks were initially fabricated, and the manufacturer should be consulted in determining the compatibility of materials.” (Id. at 8) (citation omitted). Chevron prepared an in-house publication in which it stated that because phase separation may occur in the presence of water, “extra care should be taken when gasoline oxygenated with ethanol is used as fuel for boat engines.” (Id.) (citation omitted).

Some Defendants have, in other countries, posted warning signs that E10 may not be suitable for use in boats. (See Motion at 1). As one example, Defendant British Petroleum Company (“BP”) published a brochure for use in Australia containing the following warnings:

Water and ethanol don’t mix — while new BP Unleaded 91 with ethanol is great for most ears, avoid using it in your boat.
Ethanol-blended fuel may soften plastic and certain fiberglass components in a boat’s fuel tank, causing them to leech resin and damage filters and injectors.
In moist environments (e.g. on the water) your petrol tank may ‘sweat’, forming condensation. This condensation may then be absorbed by the ethanol, causing it to separate from the rest of the fuel and sink to the bottom of the tank. This process, known as phase separation, can lead to poor engine performance (e.g. knocking and pinging) and ignition difficulties.

(Id. at 9; BP Brochure, Exhibit 1 [D.E. 443-1] at 2-3). Shell similarly provided a warning to Australian, but not American, consumers: “Can I use Shell Unleaded E10 in my marine craft, ultra-light aircraft, motorbike or two-stroke engine? No. Shell Unleaded E10 should not be used in boats, jet skis, ultra light aircraft or other equipment without first consulting the manufacturer.” (Id. at 10; Ex. 13).

Some warnings about the use of E10 in boats have been available in Florida for some time. Numerous articles have appeared in boating magazines, some boat manufacturers provide E10 warnings in their owners’ manuals, and many marine mechanics are aware that E10 may cause problems in certain types of boats. (See Opposition at 30). Moreover, a great deal of information regarding marine engines and E10 incompatibility can be found on the internet, as well as [666]*666by word-of-mouth throughout the boating community. (See November 9, 2009 Hearing (“Hearing”) at 79-80). Additionally, some marinas post very specific warnings that boaters should carefully consider whether to use E10 or a non ethanol blended gasoline, as E10 can potentially harm their boats. (See id. at 87).

Terrell has purchased fuel for his boat from various gas stations throughout southern Broward County, Florida. (See Motion at 21). Terrell generally has not purchased fuel at marinas, but instead uses a fuel caddy, driving around Broward County seeking the lowest priced gasoline in the area. (See id.). Terrell has identified the numerous stations at which he purchased E10. (See id.). Terrell originally had a fiberglass fuel tank in his boat, but has since had the tank replaced with an aluminum fuel tank. (See Opposition at 6, 29). Even now that he is aware of the dangers of E10 in marine applications, Terrell continues to buy E10 from roadside stations rather than purchasing ethanol-free fuel from marinas. (See id. at 6).

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Cite This Page — Counsel Stack

Bluebook (online)
262 F.R.D. 660, 2009 U.S. Dist. LEXIS 115863, 2009 WL 4262603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelecseny-v-chevron-usa-inc-flsd-2009.