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Opponents Can’t Object to NJ Exxon Settlement

October 9, 2015 | Posted in : Fee Award, Fee Dispute

A recent New Jersey Law Journal story, “Opponents of $225M Exxon Accord Can’t Intervene in Case,” reports that a Superior Court judge has rejected a bid by environmental groups to intervene and block New Jersey’s controversial $225 million settlement with Exxon Mobile Corp. over contamination claims.  Judge Michael Hogan, who has been hearing the case between the state Department of Environmental Protection and Exxon Mobile, denied a motion to intervene by five groups that object to the settlement.

Hogan said the five groups—New Jersey Sierra Club, Clean Water Action, Delaware Riverkeeper, Delaware Riverkeeper Network and Environment New Jersey—could not intervene because they lacked standing to bring suit under the Spill Compensation and Control Act of the Environmental Rights Act.  And even if the environmental groups did have standing, they are not entitled to intervene because the DEP adequately represent their interests, Hogan said.

The groups sought permission to intervene so they could appeal the settlement, which Hogan approved Aug. 25, to the Appellate Division.  Opponents to the settlement have argued that damages in the case were estimated as high as $8.9 billion, although lawyers for the state and for Exxon Mobil have disputed that figure and said that the $225 million, which includes about $44 million in attorney fees, was appropriate.  The $225 million figure represents the damages caused at the company's refinery facility in Bayonne and at the Bayway Refinery in Linden, as well as at all of its service stations and several other facilities in the state.