Ethanol lawsuit moves forward against oil companies
Suit claims that companies at fault for not warning boat owners that gas can damage engines, fuel tanks
By LIZ FREEMAN
Naples Daily News
Posted January 21, 2009
naplesnews.com
NAPLES — A Florida lawsuit against five oil companies for negligence by failing to warn boat owners of potential harm from ethanol-blended gasoline has survived a motion to dismiss from the defendants, according to an order by the U.S. District Court judge in Miami presiding over the case.
The next step is pursuing certification to become a class-action lawsuit, said plaintiff attorney Jeffrey Ostrow in Fort Lauderdale.
The intent is to represent all Florida boat owners who have used ethanol-blended fuel and those whose boats have been damaged by ethanol added in fuel, Ostrow said. He filed the lawsuit in August 2008 on behalf of three plaintiffs.
“We are alive and kicking here,” he said. “I think it paves the way for the same type of case in other states.”
A similar lawsuit filed in April 2008 in California, nevertheless, was dismissed last October. Ostrow believes it was the only other lawsuit filed against manufacturers of ethanol-blended gasoline.
Defendants in the Florida lawsuit are Chevron, Exxon, BP, Shell Oil and ConocoPhillips. A sixth defendant is Tower Energy Corporation, a California-based independent petroleum wholesaler.
The lawsuit says the oil companies have been negligent by not providing warnings to boat owners that ethanol additive can corrode fiberglass fuel tanks and require the tanks to be replaced, and secondly, that phased separation of ethanol from gasoline can cause engine damage.
The goal with a class-action lawsuit is reimbursement to boat owners for repairs and to require a warning label on fuel pumps alerting boaters not to use ethanol-blended gasoline or consult with a boat mechanic, Ostrow said.
U.S. District Court Judge Cecilia M. Altonaga issued an order Tuesday allowing the complaint to move forward on one count of negligence that the oil manufacturers have failed to warn boat owners of the potential harm of ethanol-blended gasoline. During earlier proceedings, the plaintiff’s attorney agreed to drop two other counts that the oil companies intentionally concealed potential harm of ethanol in gasoline and that such violated Florida’s deceptive and unfair trade law.
Defense attorneys for the five companies could not be reached for comment. Scott Dean, a spokesman for BP in Chicago, declined comment because the lawsuit is pending.
At issue is a state law adopted in spring 2008 that all gasoline sold in the state contain 10 percent ethanol, called E10, by the end of 2010 as part of conservation measures. Two exemptions were included allowing ethanol-free gas to be sold for airplanes and boats. About a half dozen other states require ethanol additives in gasoline.
Shortly after Florida’s law was passed, some boat owners around the state began experiencing engine failure and other problems after fueling up with gas purchased at gas stations or with fuel bought at marinas. Some marinas were unable initially to get ethanol-free gasoline from suppliers.
Boat mechanics also saw an upsurge in repairs, blamed on ethanol corroding resins in fiberglass fuel tanks. Another problem arises when boats sit for a while and the ethanol separates from the gas in the tank which can lead to engine troubles. |
