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$80M in Attorney Fees Sought in California Oil Spill Settlement

August 1, 2022 | Posted in : Contingency Fees / POF, Expenses / Costs, Fee Award Factors, Fee Request, Practice Area: Class Action / Mass Tort / MDL, Settlement Data / Terms

A recent Law 360 story by Nate Beck, “Attys Seek $80M Fee For Calf. Oil Spill Settlement” reports that counsel for a class of California fishers and property owners harmed by an oil spill have asked a judge to approve nearly $80 million in attorney fees and expenses for seven years of litigating the case against a pipeline company.  In May, a federal judge signed off on a $230 million settlement between Plains All American Pipeline LLP and two classes of plaintiffs that argued that a 140,000-gallon pipeline spill in 2015 sullied property owners' view of the ocean and harmed the local fishing industry.

The settlement approved by U.S. District Judge Philip S. Gutierrez gives fishers $184 million and a class of property owners $46 million.  In a motion, the parties asked Judge Gutierrez to sign off on $73.6 million in attorney fees, or 32% of the value of the total settlement. In addition, the lawyers want to be reimbursed $6 million for expenses.  Counsel argued that the amount is fair compensation for a case that produced 1.5 million pages of discovery, 100 depositions and a settlement that came on the eve of a trial.

"Class Counsel have dedicated their considerable time, skills, and resources to achieve an exceptional result in this complex, novel, and lengthy class action," according to the motion.  Lawyers further noted that they devoted tens of thousands of hours of time to the case and millions of dollars in expenses without a guarantee of reimbursement.

In May 2015, Plains All American's Line 901 buried oil pipeline burst, sending oil to Refugio State Beach through a storm drain, where it reached the ocean.  Government officials brought criminal charges against the company, which led to a $60 million settlement to cover $22.3 million in damage to wildlife.  The U.S. Department of Justice said corrosion caused the spill, arguing that the company hadn't addressed the problem and failed to prepare for and respond to the spill.