Turner v. Murphy Oil USA, Inc.

582 F. Supp. 2d 797, 2008 U.S. Dist. LEXIS 98434, 2008 WL 4661806
District Court, E.D. Louisiana·Decided October 6, 2008·No. Civil Action 05-4206·Published·Cited by 2 cases

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

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

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