Judge approves $95M settlement for Huntington Beach oil spill.
SANTA ANA Judge Approves $95 Million Settlement in Huntington Beach Oil Leak Case
A federal judge in Santa Ana has given the green light to a $95 million settlement in a class-action lawsuit involving the devastating oil leak off the coast of Huntington Beach in 2021. However, there is one small hitch.
U.S. District Judge David O. Carter has ordered the attorneys involved in the case to resolve a $2 million claim from the organizers of the annual Pacific Airshow. The airshow was cut short due to the oil spill, and its organizers are seeking compensation from Amplify Energy, the company responsible for the leak.
Amplify’s attorneys have requested a delay until October 14th to further investigate whether the airshow organizers should receive a portion of the settlement funds allocated for tourism businesses. The plaintiffs’ attorneys argue that the claim was already denied in an administrative hearing and that it is up to Judge Carter to decide if the airshow company should be included in the class.
Delays Could Hurt Claimants
The plaintiffs are concerned that any further delays could harm the claimants by prolonging the payment process. Amplify’s attorneys, on the other hand, claim that pushing the matter to October 14th would not impede the distribution of the settlement checks.
“Well, we’re all here,” Judge Carter told the attorneys. “The special master is gathering… I don’t mean to inconvenience any of you, but why not work through it [Thursday]. … We’re going to be one big happy family.”
Judge Carter commended the overall settlements reached with Amplify Energy and the shipping companies involved in the pipeline damage. He emphasized the benefits of quickly returning $95 million to the public, stating that it is far preferable to the anticipated seven years of litigation if the case were to go to trial.
He also expressed appreciation for how the attorneys managed to allocate funds to the waterfront tourism class, despite the limited number of claims filed.
Mr. Carter signed off on a $50 million settlement agreement with Amplify Energy in April, but the $45 million agreement with the vessel companies was pending until now. The claim from the Pacific Airshow will be included in the $50 million agreement.
The Pacific Airshow, which had to cancel its final day due to the oil spill, has already received $6 million from Huntington Beach, according to the attorneys.
Last year, Amplify Energy settled criminal cases in both state and federal court and agreed to pay fines. The company was ordered to pay a $7.1 million fine and reimburse the U.S. Coast Guard $5.8 million for expenses related to the spill. Additionally, Amplify Energy agreed to pay $4.9 million in fines to resolve a misdemeanor complaint in state court.
The oil leak, which occurred in October 2021, released approximately 25,000 gallons of crude oil into the ocean from a ruptured pipeline located about 4.7 miles west of Huntington Beach. The spill forced the cancellation of the popular airshow and led to the closure of beaches along the Orange County coast as cleanup efforts took place.
Federal investigators determined that the pipeline was likely damaged by a ship’s anchor, possibly belonging to one of the many cargo ships that were backlogged outside the Los Angeles-Long Beach port complex.
More than a dozen companies operating in the region filed lawsuits against Amplify Energy for damages resulting from the spill. Fishing activities resumed in late November 2021 after a two-month ban along the Orange County coast.
Why do Amplify Energy’s attorneys request additional time to investigate the validity of the Pacific Airshow claim?
Noted that the $95 million settlement was a significant step towards compensating the affected parties and addressing the environmental and economic damages caused by the oil leak.
The Pacific Airshow Claim
The $2 million claim from the Pacific Airshow organizers has been a point of contention in the case. The organizers argue that the oil spill forced them to cancel the event prematurely, resulting in significant financial losses. They believe that they should be eligible for compensation from Amplify Energy as part of the overall settlement.
However, Amplify’s attorneys have raised concerns about the validity of the claim. They have requested additional time to investigate the matter thoroughly and determine whether the airshow organizers should indeed receive a portion of the settlement funds allocated for tourism businesses.
Plaintiffs’ attorneys, on the other hand, assert that the claim was already denied in an administrative hearing. They argue that it is the responsibility of Judge Carter to make the final decision regarding the inclusion of the airshow company in the class.
Concerns over Delays
While the resolution of the Pacific Airshow claim remains unresolved, the plaintiffs express concerns about further delays in the payment process. They fear that any prolongation of the distribution of settlement checks may cause additional hardship for the claimants, who have already suffered due to the oil leak.
Amplify’s attorneys, however, maintain that the extension until October 14th would not impede the timely distribution of the settlement funds. They argue that the extra time will allow for a thorough investigation into the airshow claim and ensure that the final decision is fair and just.
Judge Carter’s Approach
Judge Carter, while acknowledging the concerns raised by both parties, has urged the attorneys to work through the matter promptly. He emphasized the importance of finding a resolution without causing undue inconvenience to anyone involved. With the assistance of a special master, Judge Carter aims to facilitate a fair and efficient decision-making process for the Pacific Airshow claim.
Furthermore, Judge Carter commended the overall settlements reached with Amplify Energy and the shipping companies involved in the pipeline damage. He recognized the significance of the $95 million settlement in providing compensation for the affected parties and mitigating the long-term impact of the oil leak on the local community and environment.
Conclusion
The approval of the $95 million settlement in the Huntington Beach oil leak case marks a significant step towards justice for the affected parties. While the Pacific Airshow claim remains unresolved, Judge Carter’s determination to address the issue promptly and fairly demonstrates his commitment to ensuring a just outcome.
As the case moves forward and the investigation into the airshow claim continues, the hope is that a resolution will be reached that satisfies all parties involved. The priority remains the well-being and compensation of the claimants who have suffered due to the devastating oil leak, and the $95 million settlement represents a crucial step towards achieving that goal.
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