In Roundup Case, U.S. Judge Cuts $2 Billion Verdict Against Bayer to $86 Million

Image by Mike Mozart

A California judge on Thursday reduced a $2 billion jury verdict, slashing the award for a couple who blamed Bayer AG’s glyphosate-based weed killer Roundup for their cancer to $86.7 million, according to a Reuters report.

A California Superior Court judge in Oakland said the jury’s billion-dollar punitive damages awards were excessive and unconstitutional, but rejected Bayer’s request to strike the punitive award outright, writes Reuters’ Tina Bellon.

The order could result in plaintiffs Alva and Alberta Pilliod receiving $17 million in compensatory and $69 million in punitive damages, down from $55 million and $2 billion, respectively.

Read the Reuters report.

 

 




Duke Energy Sued for 2014 Coal Ash Spill Environmental Harm

The Associated Press reports that federal, North Carolina and Virginia governments asked a court Thursday to declare the country’s largest electricity company liable for environmental damage from a leak five years ago that left miles of a river shared by the two states coated in hazardous coal ash.

The AP’s Emery P. Dalesio writes: “Government lawyers sought to have Charlotte-based Duke Energy declared responsible for harming fish, birds, amphibians and the Dan River bottom. Hazardous substances like arsenic and selenium poured into the river at levels high enough to harm aquatic life, according to a complaint filed in the North Carolina federal court district near the site of the 2014 disaster.”

Duke Energy pleaded guilty to federal environmental crimes in 2015 and agreed to pay $102 million.

Read the AP article.

 

 




Environmental Lawyers Probing Water Contamination from ‘Forever Chemicals’

As concern mounts over health risks from so-called “forever chemicals,” environmental trial lawyers at Dallas-based Fears Nachawati Law Firm are investigating water contamination cases on behalf of states, counties and cities across the nation.

In a release, the firm said groundwater contamination from fluorine-based PFAS compounds has been reported at hundreds of sites across the U.S., threatening the drinking water of millions of Americans. Industrial chemicals including PFAS, PFOA and PFC have been widely used by corporations to make nonstick and stain-resistant consumer and industrial products. They are also found in fire-retardant foam, which has led to large-scale groundwater contamination at military sites.

Environmental trial lawyers at Fears Nachawati are actively involved in litigation seeking to hold industrial manufacturers accountable for groundwater contamination.

“Sadly, we’ve seen the regulations move in the wrong direction when it comes to protecting Americans from this serious health threat,” said environmental trial lawyer Bryan Fears, co-founder of Fears Nachawati. “Instead of increasing oversight and forcing polluters to take action and clean up these sites, regulators are loosening deadlines and sending the wrong signals to polluters. We all have a collective responsibility to get to the bottom of the cause of weakened environmental standards. This is about the future of our children’s drinking water.”

Called “forever chemicals” because they never fully degrade, polyfluorocarbons (PFC) are a group of synthetic chemicals that include PFAS and PFOA that have been in use since the 1940s, the firm said. The compounds have been found in drinking water used by 110 million people across the nation and is estimated to be in the bloodstreams of 98 percent of Americans. The compounds have been linked to immune system problems and cancer. Recently, the Food and Drug Administration reported the discovery of PFAS compounds in grocery store meats, milk and seafood as well as in off-the-shelf products such as chocolate cake.

“When corporations fail to accept responsibility for the damage they’ve caused and when regulators decline to protect our most precious resources, it’s up to state and local governments and the American people to demand action,” said Fears Nachawati co-founder Majed Nachawati.

 

 




Fracking Companies Lost on Trespassing, But a Court Just Gave Them a Different Win

Below-ground look at frackingA week after the West Virginia Supreme Court unanimously upheld the property rights of landowners battling one natural gas giant, the same court tossed out a challenge filed by another group of landowners against a different natural gas company, reports Ken Ward Jr. of the Charleston Gazette-Mail.

The article, published on the website of the ABA Journal, is the product of a partnership with the Gazette-Mail, a member of the ProPublica Local Reporting Network.

The court on Monday upheld a lower court ruling that threw out a collection of lawsuits alleging dust, traffic and noise from gas operations were creating a nuisance for nearby landowners.

“In the property rights case last week, the justices set a clear legal standard that natural gas companies can’t trespass on a person’s land, without permission, to tap into gas reserves from neighboring tracts,” writes Ward. “In Monday’s case, the justices didn’t articulate a new legal precedent.”

Read the ABA Journal article.

 

 




PG&E Ordered to Prove New Board is Fit to Serve

Seeking bankruptcy and scrambling to complete a $1.3 billion state-mandated wildfire prevention plan, Pacific Gas & Electric will now have to prove that its newly hired directors are fit to transform the mega-utility blamed for starting the 2018 Camp Fire in Northern California, reports Courthouse News Service.

While the new members have “impressive resumes,” said Commission president Michael Picker, it’s not clear they have the safety experience or time to manage the overhaul of a publicly traded utility facing an estimated $30 billion in wildfire liabilities.

Courthouse News Service reporter Nick Cahill writes that many state lawmakers and Gov. Gavin Newsom have been skeptical of the additions, citing the new members’ ties to Wall Street.

Read the Courthouse News article.

 

 




Groundwater Law Can Bring Some Unwelcome Surprises to Property Owners

Stephen Cooney of Gray Reed, in a post on the firm’s website, provides some analysis of the state of groundwater law in Texas and discusses some of the effects of a Texas Supreme Court case that should now be a concern to land purchasers in every transaction.

In Coyote Lake Ranch, LLC v. City of Lubbock, the court found  that a severed groundwater right would be worthless if the groundwater owner could not enter upon the land in order to extract the groundwater

Under the law now, a petroleum development company can set up a pad, build roads, lay pipeline and start drilling for water, even though the holder of the mineral rights waived the right to come on the property to drill for oil and gas.

Read the article.

 

 




Bayer Bets on ‘Silver Bullet’ Defense in Roundup Litigation; Experts See Hurdles

Image by Mike Mozart

Reuters is reporting that Bayer AG plans to argue that a $2 billion jury award and thousands of U.S. lawsuits claiming its glyphosate-based weed killer Roundup causes cancer should be tossed because a U.S. regulatory “agency said the herbicide is not a public health risk.

“Some legal experts believe Bayer will have a tough time convincing appellate courts to throw out verdicts and lawsuits on those grounds,” writes Reuters’ Tina Bellon. “Bayer has a better shot if a business-friendly U.S. Supreme Court takes up the case, experts said. But that could take years.”

Bayer acquired Monsanto, the manufacturer of Roundup, last year, and the litigation involving 13,400 plaintiffs went along with the deal. The plaintiffs allege the product causes cancer. So far, three consecutive U.S. juries have found the product to be carcinogenic, resulting in verdicts amounting to billions of dollars.

Read the Reuters article.

 

 




Judge Orders PG&E Directors to Visit Town Destroyed by Wildfire

A federal judge on Tuesday ordered Pacific Gas and Electric Co.’s board to tour the Butte County community where the company’s equipment is suspected of starting a historically devastating California wildfire last year.

The San Francisco Chronicle reports that “U.S. District Judge William Alsup made the decision at a sentencing hearing he held for the utility regarding a violation of its probation arising from the 2010 San Bruno pipeline explosion. Alsup previously found the utility did not properly report a settlement it reached over a small 2017 fire.”

Alsup said he wanted the energy company executives to “see the gravity of what happened up there” and indicated he likely will join the tour.

Read the SF Chronicle article.

 

 




Outcry Over EPA Proposal to Weaken Standards for Cleanup of ‘Forever Chemicals’

EPA: Environmental Protection AgencyThe Environmental Protection Agency has proposed weaker standards for cleaning up dangerous groundwater contamination sites across the country where chemicals containing fluorine-based PFAS compounds threaten drinking supplies of millions of Americans, according to a post by Androvett Legal Media & Marketing. The proposal would lower existing requirements for addressing groundwater contamination at military bases where large amounts of contamination have been documented.

“We’ve seen companies like 3M and DuPont fail to take responsibility for the health risks caused by the chemicals they created. Federal regulators should be increasing – not decreasing – oversight at this time,” said water contamination attorney Bryan Fears of Dallas-based Fears Nachawati, who represents individuals and local governments in water contamination litigation against makers of the chemicals. “This problem is not going away and cleaning up these sites must be a priority.”

Called “forever chemicals” because they never fully degrade, PFAS compounds have been found in drinking water used by 110 million people across the nation and in the blood of 98 percent of Americans. The compounds, which are found in hundreds of consumer and industrial products, have been linked to immune system problems and cancer. The EPA proposal would extend the timetable for cleanup at more than 400 military bases where the use of fire-retardant foam containing the chemicals has been blamed for serious groundwater contamination problems.

The EPA proposal is under a 45-day review and comment period. “Now is the time for Americans to speak up about this problem and ensure that contamination is addressed sooner rather than later,” said Fears. “This is a fight for safe drinking water for our communities, families and future generations to come.”

 

 




Food Regulatory Lawyer Joan Baughan Joins Steptoe

Joan Baughan has joined Steptoe & Johnson LLP as a partner based in the Washington office. Baughan practices food and drug law, focusing on US Food and Drug Administration (FDA) and comparable international regulation of food contact materials, drugs, drug packaging, cosmetics, and medical devices. She will lead the firm’s global food contact materials practice.

In a release, the firm said Baughan’s food contact regulatory work includes the broad spectrum of activities associated with food contact materials including regulatory filings, opinion letters, performing compliance audits and training courses for clients, and advising on recalls. She also advises clients on drug packaging regulations, medical devices, Proposition 65 warning requirements, and cosmetics packaging issues. Baughan has experience with the regulation of food packaging materials and medicinal products under European Union and member state legislation, and is also familiar with the food contact approval regimes in Canada, China, Japan, and MERCOSUR (Argentina, Brazil, Paraguay, Uruguay, and Venezuela).

Baughan earned her J.D. from the Catholic University of America, where she was managing editor of The Catholic University Law Review. She received both her B.S. and B.S.M.T. from the University of Massachusetts at Amherst.

 

 




Landowners, Energy Companies Seek to Capture Court’s Ruling in Historic Hydraulic Fracking Case

Below-ground look at frackingThe Supreme Court of Pennsylvania has agreed to hear a case to consider whether the rule of capture applies to hydraulic fracking, reports The Hydraulic Fracking Blog of Norton Rose Fulbright.

The case involves landowners’ trespass and conversion claims against an energy company based on hydraulic fracking activities. The plaintiffs  compared the energy company’s fracking activity to slant drilling, claiming that the proppants of hydraulic fracturing “serve the same purpose as a drill bit invading the land.”

Read the article.

 

 

 




Ford Says Feds Have Opened Criminal Probe Into Its Emissions Certifications

CNBC is reporting that the Justice Department has launched a criminal investigation in a matter relating to Ford Motor’s emissions certification process.

“The matter stems from issues related to road load estimations, including analytical modeling and physical track testing,” writes CNBC’s Amelia Lucas. “Road load is a vehicle-specific resistance level that helps determine fuel economy ratings and emissions certifications. It does not involve the use of defeat devices to cheat on emissions tests.”

The company said it voluntarily disclosed disclosed the issue to the Environmental Protection Agency on Feb. 18 and has hired outside experts to investigate its vehicle fuel economy and testing procedures after employees raised concerns.

Read the CNBC article.

 

 




Haynes and Boone Issues Energy Roundup for Spring 2019

Haynes and Boone’s Spring 2019 Energy Roundup highlights an evolving United States oil and gas industry responding to recent commodity price volatility, the firm said on its website.

It also examines new international investment opportunities arising from legal changes in the United Kingdom and Brazil.

And the Spring 2019 Borrowing Base Redeterminations Survey predicts a conservative, but not knee-jerk, response by banks to the late 2018 drop in oil prices.

“Investor activism is on the rise in the public E&P space – our capital markets group tracks the various players and the demands they are marking. In the midst of this changing market, our guest contributor from Opportune LLP gives an outlook on upstream trends in 2019 and we also look at the related impact in the midstream space,” the firm said in the introduction to the report.

Read the report.

 

 




Judge Dismisses Pipeline Operator’s Racketeering/Defamation Suit Against Greenpeace

A federal judge in North Dakota has dismissed a $900 million defamation and racketeering suit against Greenpeace filed by Energy Transfer Partners, operator of the Dakota Access Pipeline.

Greenpeace was represented in the matter by Lance Koonce, Laura Handman, Lisa Zycherman, and Thomas R. Burke of Davis Wright Tremaine, the law firm said in a release.

District Judge Billy Roy Wilson wrote in his order dismissing the case that, “Posting articles written by people with similar beliefs does not create a RICO enterprise,” and that, “Donating to people whose cause you support does not create a RICO enterprise.”

Last month, the same Davis Wright Tremaine team won dismissal of similar RICO claims lodged against Greenpeace by Resolute Forest Products. That case was heard in the Northern District of California.

“The dismissal of these cases is of enormous importance not just to our clients but to watchdog and advocacy groups of all stripes,” said Koonce. “Because if companies criticized by such organizations were able to bring claims under the guise of RICO, with its treble damage provision, that are really designed to chill speech, it would put critical discourse on issues of public significance at great risk.”

 

 




Appeals Court Allows Quick-Take of Land for Mountain Valley Pipeline

The 4th U.S. Circuit Court of Appeals has upheld the “take first, pay later” approach to building the Mountain Valley Pipeline, in which the company condemned private property in the project’s path before paying opposing landowners for their losses, reports The Roanoke Times.

Reporter Laurence Hammack writes that the ruling was a blow to pipeline foes, who have long decried the use of eminent domain to take parts of family farms and rural homeplaces to make way for a 303-mile natural gas pipeline through West Virginia and Virginia.

Landowners did not contest the laws that allowed the pipeline company to obtain forced easements through nearly 300 parcels in Southwest Virginia, but they objected to a lower-court ruling granting immediate possession of the disputed land before deciding how much each property owner should be compensated, Hammack explains.

Read the article.

 

 




Border Wall Needs Private Property. But Some Texans Won’t Give Up Their Land Without a Fight.

Government lawyers have taken the first step in trying to seize private property using the power of eminent domain to build a border wall — a contentious step that could put a lengthy legal wrinkle into President Trump’s plans to build hundreds of miles of wall, reports The Washington Post.

Previous eminent domain attempts along the Texas border have led to more than a decade of court battles, some of which date to George W. Bush’s administration and have yet to be resolved, according to the Post‘s Katie Zezima and Mark Berman. Many landowners are vowing to fight anew.

The reporters quoted Gerald S. Dickinson, an assistant professor of law at the University of Pittsburgh, who said this newest fight will be different because the earlier effort mostly included federal government land.

“If it’s going to be a contiguous wall across the entire southwest border, you’re talking about a massive land seizure of private property,” he said.

Read the Post article.

 

 




Federal Judge Blocks Keystone Pipeline XL in Major Blow to Trump Administration

Image by Elvert Barnes

A federal judge temporarily blocked construction of the controversial Keystone XL pipeline, ruling late Thursday that the Trump administration had failed to justify its decision granting a permit for the 1,200-mile long project designed to connect Canada’s oil sands fields with Texas’s Gulf Coast refineries.

The Washington Post characterized the order as a  major defeat for President Trump, who attacked the Obama administration for stopping the project in the face of protests and an environmental impact study.

Post reporters explain that the order “requires the administration to conduct a more complete review of potential adverse impacts related to climate change, cultural resources and endangered species. The court basically ordered a do-over.”

Read the Washington Post article.

 

 

 




Former Partner Sentenced to Five Years in Prison for Scheme to Bribe Alabama Lawmaker

A former partner at Balch & Bingham has been sentenced to five years in prison for a scheme to bribe an Alabama state legislator to oppose expansion of a site designated for an environmental cleanup, reports the ABA Journal.

Gilbert was part of Balch & Bingham’s environmental and natural resources practice, according to reporter Debra Cassens Weiss. Prosecutors had alleged he and a co-defendant, coal company executive David Roberson, funneled $360,000 to the state lawmaker through a consulting contract with his private foundation.

The lawmaker, former Alabama State Rep. Oliver Robinson, was previously sentenced to 33 months in prison after pleading guilty to conspiracy, bribery, wire fraud and tax evasion, the Journal reports.

Read the ABA Journal article.

 

 




Energy Attorney Christopher J. Townsend Joins Freeborn

Christopher J. Townsend has joined Freeborn & Peters LLP’s Chicago office as a partner and co-leader of the firm’s Environment and Energy Practice Group.

“This is the exact right time for Chris to be joining the firm,” said Philip L. Comella, a Freeborn Partner and Co-Leader of the Environment and Energy Practice Group. “Environmental and Energy law and policy continue to converge at an increasing pace, with clients looking for creative but practical ways to address emerging technologies, shifting energy markets, and constantly evolving laws and regulations. I look forward to collaborating with Chris to lead our team helping a wide variety of clients address environmental and energy issues. Chris is a nationally-ranked leader in Energy law, and our clients will greatly benefit from his insights and experience in developing innovative solutions, particularly related to complex infrastructure projects and multi-faceted administrative proceedings.”

In a release, the firm said Townsend has more than two decades of experience representing forward-thinking energy market participants, both individually and in coalitions, develop, defend and improve the structures for effective and efficient competition in the energy markets. He regularly provides energy advice to entities other than the local utilities, including large industrial, institutional and commercial energy users; municipalities; and other governmental entities. He also assists alternative electricity and natural gas suppliers in developing the structures for energy markets. In addition, he represents energy project developers on complicated and cutting-edge projects and assists other large-scale energy industry participants.

“We are thrilled to welcome Chris to the firm,” said Freeborn Co-Managing Partner Michael J. Kelly. “His award-winning commitment to client service and continuous focus on positioning clients for the next wave of changes in the energy world is a great fit with our firm’s culture.”

The firm said Townsend has been involved in a wide variety of regulatory proceedings before the Illinois Commerce Commission and the Federal Energy Regulatory Commission, as well as in numerous legislative efforts before the Illinois General Assembly, with an emphasis on matters related to bringing additional efficiencies to the energy industries. He also has served as counsel to several consortia composed of large industrial, institutional, governmental and commercial electricity consumers; retail energy suppliers; a public water district; and a small privately owned water company. Globally, he has worked with the U.S. State Department and counseled the government of Iraq on multi-billion-dollar energy and infrastructure projects.

Townsend previously was a partner at DLA Piper and most recently was a member of the Environment, Energy & Natural Resources Practice Group at Clark Hill PLC in Chicago. He has been consistently ranked by Chambers, receiving its top rank in the area of Illinois Energy & Natural Resources law earlier this year. He also is a three-time winner of the exclusive Lexology Client Choice Award for Energy & Natural Resources in Illinois.

Townsend received his J.D. from the University of Iowa College of Law (with honors) and his Bachelor of Arts (cum laude) from Augustana College.

 

 




PA Court Rejects Fracking Company’s Appeal In ‘Rule Of Capture’ Decision

Below-ground look at frackingA Pennsylvania appeals court rejected a request by a natural gas production company to rehear a case whose outcome could affect drillers across the country, reports WSKG.

Briggs v. Southwestern Energy Production Company involves the legal principle known as “rule of capture,” which means a property owner has the right to extract or “capture” an underground resource such as water, oil or gas, even if it flows from beneath another property owner’s land, explains reporter Susan Phillips. The case calls into question the longstanding practice as it applies to fracking, which requires subsurface rock to be deliberately broken in order to release trapped gas.

“In 2015, the Briggs family sued Southwestern Energy for trespass and conversion, arguing that the company’s fracking efforts were illegal and it should not be allowed to use wells on neighboring properties to tap gas beneath their land,” writes Phillips. “The family owns about 11 acres of land in Susquehanna County and did not lease its land for gas drilling.”

The trial court rejected their arguments, but an appellate court found that the Briggs’ arguments had legal merit.

Read the article.