Sunday, July 4, 2010

Oil Spill Spurs Lawsuits in Florida Keys

Not a drop of crude oil from the Deepwater Horizon blowout, nor any toxic dispersants used to attack it, have been documented in waters off the Florida Keys or along the tropical island's coastline.

But misperception that the oil has arrived -- and the threat that it still could -- has led to the filing in South Florida of 18 federal lawsuits against BP in the past two weeks.


The eclectic group of plaintiffs includes the Brass Monkey Lounge, tiki party boat owner Captain Duck, a commercial stone crab fisherman and the manager of oceanfront vacation rentals in Key West.

``It's still beautiful here,'' said Judy Sorenson, owner of the Brass Monkey Lounge, a local watering hole in Marathon that also caters to tourists. ``But people aren't coming because they think the oil is here, even though it isn't here. That's killing the Keys.''

Even Ripley's Believe It or Not! museum in the Southernmost City has gotten into the litigation act against the corporate oil giant and associated rig operators and repair agents, claiming that attendance is down to see its white buffalo, camel bone carving and other weird exhibits because of the loss of tourism from the oil spill.
With oil still spewing from the leak site hundreds of miles away in the Gulf of Mexico, many more similar lawsuits are in the works to be filed by businesses in South Florida, according to lawyers involved in the lawsuits. Because of the changing nature of the disaster, none has yet specified damages in dollar amounts, but the total is expected to reach more than $5 million for the class action lawsuits.

``I think every single resident in the Keys is going to be a victim of the oil spill, from fishermen and hoteliers to the waitresses in the restaurants,'' said Robert Brown of the Miami-based law firm Baron & Budd that is part of a team representing seven charter boat captains and Ripley's.

Brown said people keep calling for representation, including a man who owns an acre of bay bottom used to harvest live rock for aquariums.

To handle the flood, BP has opened two claims offices in the Keys, one in Marathon on May 29 and one in Key West on June 4.

``Clearly, there has been no oil impacts here in the Keys, but we are working to be proactive,'' said Andrew Van Chau, BP's community liaison from Key Largo to Key West. ``We're working with the state of Florida on a $25 million advertising campaign for tourism to say businesses are open and the fishing is good.''

So far, about 350 individuals or businesses have filed claims at the two Keys' offices, with processing taking about seven to 10 days. BP wouldn't say how many, if any, of those claims have been paid yet.
Richard Morecroft, owner of All Florida Keys Property Management Company, which rents 50 units at a swanky condo resort in Key West, said he did not file a claim with BP before filing his lawsuit.

``I don't trust that BP will do what is right for the small, independent, family-owned business,'' Morecroft said. ``I just want them to know I mean business.''

Although this is the slow time of year for tourism in the Keys, Morecroft said he already has lost 10 bookings at $1,000 each due to the oil spill.

Jose Manual Olivera, a commercial stone crab and lobster fisherman based in Marathon, has filed a lawsuit although seasons now are closed for both seafood delicacies.

Attorney Steve Hunter, who represents Olivera, said he obviously would not be able to prove damages ``right now.'' But Hunter said it is important that the lawsuit be filed to alert BP and other companies to ``start thinking about the Florida Keys, with its reefs and the mangroves that are very, very delicate.''
Hunter said that even if the oil never arrives in the Keys' fishing grounds, commercial fishermen could be hurt by the ``stigma damage'' of their Gulf seafood.

Family-owned Casablanca Fish Market, which operates a Miami River eatery and small fleet of fishing boats, employs 87 people and was the first business to file in South Florida.

``What may be a hiccup for a big oil industry could be a heart attack for a small fish house and its fishermen,'' said attorney Ronald Rodman, who represents the fish market.

With the ``dark cloud'' still lingering over the Keys that the oil and toxic dispersants could arrive, even Keys businesses and fishermen not affected have been bombarded with pitches from law firms and offers to attend free informational seminars on how-to-sue BP.

On Wednesday, the Key West-based firm Horan, Wallace & Higgins partnered with a mass tort law firm, Fonvielle Lewis Foote & Messer from Tallahassee, to hold two seminars: one for fishermen and charter boat captains and one for tourist-related business owners.

``You don't need an attorney for short-term damages; the long term is what we're looking at,'' David Paul Horan told about 40 people at the Key West Yacht Club. ``I don't know, and nobody else knows, if we're going to have a worst-case scenario.''

An owner of a tattoo business on touristy Duval Street in Key West asked how businesses hurt by the ``trickle-down'' affect could document damages since her customers are walk-ins.

All the hundreds of oil spill lawsuits filed in several states most likely will be consolidated into one multidistrict litigation case, where issues of negligence that are common to everybody will be decided in one court.
``Then the only thing left to prove is damages,'' said Hunter who represents the stone crab fisherman. ``Everybody goes back from where they are from to have juries of their peers give them their day in court.''
This all could take years.

Of the 18 lawsuits already filed in South Florida, 11 were by charter boat captains who have been among the first to feel the pinch because they primarily make their living taking tourists fishing, snorkeling, diving and/or partying off the Keys.

Capt. Dana Banks, who runs a 38-foot charter boat called the War Bird out of the ritzy Ocean Reef Club in North Key Largo, said his bookings are down for fishing trips that run $1,200 for a full day and $800 for a half day.

``I have some bookings for this week and next week for tournaments, but after that: Nothing,'' he said. ``I don't have any concrete evidence that says it's from what's happening from the oil spill. Now, I only speculate as they do on Wall Street.''

Gusher of Oil Brings Geyser of Litigation

Gusher of oil brings geyser of litigation


In the immediate aftermath of the Deepwater Horizon disaster, BP publicly touted its expert oil clean-up response, but it quietly girded for a legal fight that could soon embroil hundreds of attorneys, span five states and last more than a decade. BP swiftly signed up experts who would otherwise work for plaintiffs, shopped for top-notch legal teams and presented volunteers, fishermen and potential workers with waivers, hoping they would sign away some of their right to sue. Recently, BP announced it would create a $20 billion victim-assistance fund, which could reduce court challenges.

But the lawsuit frenzy came anyway.

So far, an estimated 250 court claims may have been filed against BP. More come each day. Florida Gov. Charlie Crist has tapped Steve Yerrid -- one of the so-called ``dream team'' lawyers in Florida's landmark tobacco suit -- to assemble a new legal crew to provide advice. Counties and cities are getting lawyered up as well.

Robert J. McKee, attorney with the Fort Lauderdale firm of Krupnick Campbell Malone, was surprised by how quickly BP hired scientists and laboratories specializing in the collection and analysis of air, sea, marsh and beach samples -- evidence that's crucial to proving damages in pollution cases.

Five days after the April 20 blowout, McKee said, he tried to hire a scientist who has assisted him in an ongoing 16-year environmental lawsuit in Ecuador involving Dupont.

``It was too late. He had already been hired by the other side,'' McKee said. ``If you aren't fast enough, you get beat to the punch.''

At the same time it was bolstering its legal team, BP America's chief operating officer for exploration and production, Doug Suttles, downplayed the flow-rate of the oil leak, which had been discovered just the day before near the wreckage of the Deepwater Horizon rig.

``The rate we're seeing today is considerably lower, considerably lower than what was occurring when you saw the rig on fire,'' he said on NBC Nightly News.

LEGAL BIG GUNS

Days later, McKee mustered a team of scientists collecting samples on the Louisiana barrier islands. At the time, the law firm and its partners didn't even have clients. Now, Krupnick Campbell is working with seven other Gulf Coast firms that represent aggrieved businesses, fishermen and residents from the Texas-Louisiana border to Key West.

A BP spokesman said the company doesn't comment on lawsuits and ``won't be giving running commentaries'' on the number of court actions it is facing.

In Florida, BP has hired Akerman Senterfitt, the state's largest law firm. Halliburton Energy Services, which pumped the cement casing into the well before it failed, has hired Broad & Cassel. Cameron International, which manufactured the failed blow-out preventer, signed up Greenberg Traurig.
All three firms are among the biggest political players in Florida's capital. Transocean, owner of the Deepwater Horizon rig, has yet to announce the Florida firm it has hired.

Right after the explosion, Transocean persuaded some rig workers to sign waivers saying they weren't injured. Also in the early days after the spill, BP officials offered fishermen and prospective workers liability waivers. That prompted Florida Attorney General Bill McCollum to warn citizens: ``Do not sign waivers.''
In contrast to some of its residents, the state of Florida wants to avoid lawsuits right now.

McCollum has devoted three full-time attorneys to manage the legal response and advise a state economic-recovery task force. They're working with two former attorneys general, Bob Butterworth and Jim Smith, as well as Crist, a former attorney general who tapped Tampa lawyer Steve Yerrid to be his legal advisor.

BUILDING A TEAM

Yerrid plans to assemble a team of pro-bono legal advisors, many of whom worked alongside him in the state's successful lawsuit against Big Tobacco in the 1990s, which earned the state $11.3 billion plus billions more in attorneys fees.

One of the members of Yerrid's past and future legal teams, Fred Levin, has already filed a racketeering lawsuit against BP on behalf of Pensacola Beach condominium residents. Yerrid said the state has different issues than its private citizens and will hold its fire.

``Right now is not a time for lawsuits for the state,'' Yerrid said.

The grounds for the suits and potential suits run the gamut: federal pollution and environmental laws, general maritime law, international treaties, public-nuisance codes and even state and federal racketeering laws. In Florida, fishermen can take advantage of a 2-week-old Florida Supreme Court ruling in a St. Petersburg crabber's lawsuit that expands the right to sue polluters under the Pollutant Discharge Prevention and Control Act.

The state has two main laws to help collect damages: the state pollutant act and the federal Oil Pollution Act.
The state law clearly specifies the amount of environmental damages it can receive. The Florida Department of Environmental Protection has been gathering samples that would be the basis for environmental challenges and fines.

A LONG SLOG

The federal oil pollution law allows governments to collect lost tax revenues and the cost of increased governmental services as a result of a spill. Crist's budget and policy chief, Jerry McDaniel, and state economists are gathering data to show the effects the spill will have on the Florida's economy and collections of sales, property and hotel-room taxes.

Brian O'Neill, a lead attorney in the 1989 Exxon Valdez oil spill case, said the Gulf Coast states and residents should realize it will take years to clean the waters, the marshes and the beaches. Three years after the Alaska spill, salmon stocks started to return, he said, but the herring population was ``exterminated'' in Prince William Sound.

Exxon spent $2 billion and cleaned up just 8 percent of the oil, he said. And the oil never left.
``You're going to have to wait years to figure out what happened and what is happening,'' O'Neill said. ``The oil goes where you don't expect it. You will clean a beach and the oil will just come back in a few months or a year. The beaches could be oiled and oiled again.''

And the fight against the oil company could take decades.

``Exxon has shown you can stiff those you hurt and tie them up in court for 21 years and nothing bad happens to you,'' he said. ``You hope BP won't do that.''

St. Petersburg crabber Howard Curd is worried.

His blue- and stone-crab fishing grounds in Tampa Bay were damaged when a phosphate freighter and two fuel barges collided near the Skyway Bridge, leading to $50 million in damages. The case was finally settled in 2004, just before Hurricane Frances blew out a retaining wall at a phosphate pit that spewed acidic water into the bay and killed off blue crabs and stone crabs, Curd said.

BURDEN OF PROOF

The fertilizer company, Mosaic, persuaded a trial court and an appeals court that Curd and other fishermen couldn't sue because they didn't own the seafood that was potentially killed, so they weren't technically damaged.

Finally, six years later, the Supreme Court on June 17 reversed lower-court opinions and said Curd and other fishermen could sue. Curd now has to prove damages in court. The ruling in his favor arrived just in time for Florida's 23,422 commercial and charter fishermen who could use the new ruling to press pollution claims against BP.

But the court was silent on others who depend on the water for the livelihood -- such as seafood restaurants and fish houses. But they could likely sue under the new ruling as well, say Curd's attorneys, Andra Dreyfus and F. Wallace Pope.

Curd said crabbing in the bay is only bouncing back now, but the BP spill is already depressing seafood sales even though the oil is nowhere near the western coast of the peninsula.

He's prepared to sue BP, but harbors no illusions about facing a big corporation in court.

``They've got all the money, and all the attorneys and all the experts on retainer. It really doesn't cost them anything,'' Curd said. ``It's like it's cheaper to pay their attorneys and fight in court then paying the money to people they hurt and doing the right thing.''
Marc Caputo can be reached at mcaputo@MiamiHerald.com.