Turner v. Murphy Oil USA, Inc.

582 F. Supp. 2d 797, 2008 U.S. Dist. LEXIS 98434, 2008 WL 4661806
CourtDistrict Court, E.D. Louisiana
DecidedOctober 6, 2008
DocketCivil Action 05-4206
StatusPublished
Cited by2 cases

This text of 582 F. Supp. 2d 797 (Turner v. Murphy Oil USA, Inc.) 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
Turner v. Murphy Oil USA, Inc., 582 F. Supp. 2d 797, 2008 U.S. Dist. LEXIS 98434, 2008 WL 4661806 (E.D. La. 2008).

Opinion

*799 ORDER AND REASONS

ELDON E. FALLON, District Judge.

Before the Court is Special Master Judge Robert Klees’ Final Report regarding the allocation of the common benefit fee award among plaintiffs’ counsel (Rec. Doc. No. 2457) as well as Objections to the Special Master’s Final Report from Salvador Gutierrez (Rec. Doc. 2477), Anthony Irpino (Rec. Doc. 2480), Daniel Becnel (Rec. Doc. 2481), Jerald Andry (Rec. Doc. 2483); Sidney Torres (Rec. Doc. 2485), Yal P. Exnicios (Rec. Doc. 2486), Mickey Landry (Rec. Doc. 2487), Lance Licciardi (Rec. Doc. 2488), Michael Stag (Rec. Doc. 2489), and a Request to Clarify and Correct Factual Errors in Certain Objections to the Special Master’s Report (Rec. Doc. 2484). The Court previously awarded $33,746,241.88 in common benefit fees and costs and allowed the plaintiffs’ attorneys an opportunity to make a recommendation to the Court as to the appropriate allocation of this sum. The attorneys were unable to agree upon the appropriate allocation, and the Court appointed a special master to consider this issue and make a recommendation for the Court’s consideration. After considerable discovery, several hearings and a preliminary report, the Special Master has now submitted his final report to the Court. This report was sent to all counsel of record and has been posted on the Court’s website. Counsel were accorded an appropriate period to file objections with the Court, and be heard. The Court has now had an opportunity to consider the matter and issues the following Order and Reasons!

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Factual Background 1

To put this matter in context, a brief summary of the events is helpful. On August 29, 2005, Hurricane Katrina made landfall on the Louisiana/Mississippi border, resulting in one of the most devastating natural disasters ever to occur in the United States. As the storm passed over southeastern Louisiana, twenty-foot storm surges rolled into the Mississippi River-Gulf Outlet (the “MR-GO”) and swept over and breached some fourteen miles of a levee system intended to protect St. Bernard Parish, inundating nearly all of the homes and businesses with massive flood waters.

*800 Among those properties impacted by the flood waters was the Murphy Oil refinery in Meraux, Louisiana. The refinery, owned and operated by Murphy Oil USA Inc., produced approximately 125,000 barrels of refined petroleum per day. Located on Murphy’s property are multiple above-ground tanks used to hold crude oil. These tanks are surrounded by earthen berms, or dikes, built to contain any oil that might escape from the tanks in the event of a leak or spill. These containment devices either failed or were topped and flood waters encircled the tanks. One of the tanks allegedly had an insufficient amount of product in it to keep it anchored. It floated and broke from its moorings and ruptured allowing approximately 25,110 barrels of crude oil to escape and travel into the neighborhoods surrounding the refinery. Numerous lawsuits soon followed.

After some initial discovery, motions were filed seeking class certification. Following an evidentiary hearing and extensive briefing the Court certified this matter as a class action. See, Turner v. Murphy Oil USA, Inc., 234 F.R.D. 597 (E.D.La.2006) (certifying class action). On March 3, 2006, the Court adopted a trial plan for this litigation, which bifurcated the trial into two different phases. 2 Phase One would address common issues of liability and general causation; Phase Two would consist of successive trials on specific causation and compensatory damages. However, Phase Two would only take place if a jury found Murphy liable in whole or in part in Phase One.

Phase One of the trial was scheduled to commence on October 2, 2006. However, on September 25, 2006, the trial was can-celled because the parties reported to the Court that they had come to an amicable resolution of the case and had signed a Memorandum of Understanding to this effect. 3 On October 9, 2006, the parties presented a Final Settlement Agreement and Notice Program to the Court, 4 which was preliminarily approved on October 10, 2006, 5 pending a fairness hearing noticed to all class members. The total amount of the settlement was $330,126,000. In addition, Murphy also agreed to pay all reasonable common benefit fees and costs to be determined by the Court. See Turner v. Murphy Oil USA Inc., 472 F.Supp.2d 830, 845 (E.D.La.2007).

B. Settlement Agreement and Determination of Common Benefit Fund

A fairness hearing was held on January 4, 2007, and the matter was taken under submission by the Court at that time. 6 On January 30, 2007, the Court approved the Class Action Settlement of $330,126,000 and awarded an additional sum for common benefit fees and expenses. Turner v. Murphy Oil, USA Inc., 472 F.Supp.2d 830 (E.D.La.2007). In order to determine the amount of the common benefit fund it was first necessary to decide what portion of the settlement was produced by plaintiffs counsel’s efforts. The Court concluded that the portion of the settlement amount recovered as a result of their efforts was $195,000,000. Id. at 861-62. The Court reached this figure by excluding from the computation the sum of $83,264,000 paid by Murphy in its voluntary settlement program established before suit was filed and $51,862,000 in pre-class settlement remedi *801 ation costs. Id. These amounts were excluded from the computation of the common benefit fund because they were not produced by plaintiffs’ counsel’s efforts. The Court then evaluated the benefit received by the class from these efforts and found that an initial benchmark of 15% of the amount recovered by counsel’s efforts, would produce a reasonable common benefit fund in this case. Id. at 862-64. Next, the Court considered the various Johnson factors to determine whether an adjustment of the initial benchmark was warranted. Id. at 864-67. After a review of these factors, the Court found that an upward adjustment of the benchmark percentage was appropriate and the Court increased the percentage to 17%. 7 Id. Based on these determinations, this analysis suggested that the PSC was entitled to common benefit fees and costs of 17% of $195,000,000 plus some previously es-crowed funds for a total of $33,746,241.88. Id. at 867. The Court then performed a lodestar cross-check. Id. at 867-69. After its review, the Court determined that the lodestar cross-check supported an award of $33,746,241.88. Id. at 869. Accordingly, the Court awarded such amounts as common benefit fees. Id. Pursuant to the terms of the settlement agreement the Court ordered that the common benefit fund was to be paid by Murphy in addition to the amounts to be paid to the plaintiffs.

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Bluebook (online)
582 F. Supp. 2d 797, 2008 U.S. Dist. LEXIS 98434, 2008 WL 4661806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-murphy-oil-usa-inc-laed-2008.