Judge Will Approve $48M Louisiana Sinkhole Class Action Settlement

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A $48 million class action settlement will be approved by a Louisiana federal judge in a lawsuit alleging that Texas Brine Co. LLC caused a sinkhole in 2012.

A Fairness Hearing was held on Aug. 13 in which U.S. District Judge Jay C. Zainey heard from seven class members who each gave their approval of the settlement. At status conference was scheduled for Oct. 23 at the Louisiana federal court.

The 422 feet deep and 372 feet wide sinkhole allegedly occurred after Texas Brine excavated an underground salt dome cavern, causing it to collapse in August 2012 in Bayou Corne, Louisiana, which Texas Brine and Occidental Petroleum Corp. were charged with causing. Occidental Petroleum owned the land.

Louisiana Gov. Bobby Jindal declared a statewide emergency in the sinkhole area, including a mandatory evacuation of the area.

The salt cavern allegedly collapsed due to a defective design by Texas Brine, which the industrial brine company used to deposit radioactive material which was produced because of its salt drilling activities, the class action lawsuit explained.

The sinkhole continues to swallow land, although in March it appeared to be stabilizing. In November 2013, the sinkhole was about 25 acres, it is currently about 37 acres.

According to the sinkhole class action lawsuit, the sinkhole lead to the release of a foul diesel odor and contained a salt water slurry which included diesel fuel.

Texas Brine also approved of the settlement in a memorandum it filed in early August.

“The compensation paid on behalf of [Texas Brine] is reasonable in light of the history of the litigation and the hurdles faced by the plaintiffs in further pursuing the litigation,” the brine producer said.

“This settlement minimizes the complexity, expense and risk involved in litigating class members’ claims and is intended to provide relief to class members in a timely manner,” the company added.

Texas Brine releases fact sheets regularly updating local residents and business owners on the progress of the containment of the sinkhole.

“Texas Brine Company has been committed to responding to this incident and completing the four key objectives identified by local and state officials: Confirming dome stability, maintaining sinkhole containment, venting gas and supporting the Bayou Corne community,” it states on each fact sheet.

The class includes 269 people affected by the sinkhole and who lived in Bayou Corne in the Assumption Parish community, who were forced to evacuate as a result of the sinkhole and gas fears.

Out of the $48 million, class members will receive payment for property, which will be bought by Texas Brine as well as another payment for damages.

“Texas Brine believes that the settlement is a fair and adequate resolution,” said Millard “Sonny” Cranch, a spokesman for Texas Brine.

The amount owed to each class member will be determined by a special master appointed by the court, who is to contact each class member within 60 days and notify them of the his or her allocation for damages. They will then have 30 days to object, if needed.

Class members could start receiving checks by December, as the settlements are set to be approved in the next few months.

“Assistance payments will continue to be paid until each property is closed, just as we did with our direct settlements,” Cranch explained.

Texas Brine has already bought out the property of 66 owners, a process that was concluded in March.

About 28 percent of the class action settlement will go to cover attorneys’ fees and court costs.

The plaintiffs’ committee is represented by class counsel Calvin C. Fayard Jr. and Blayne Honeycutt of Fayard & Honeycutt APC; Richard G. Perque of the Law Offices of Richard Perque LLC; Matthew B. Moreland of Becnel Law Firm LLC; Lana Ourso Chaney of Lana Ourso Chaney, Attorney at Law; Lawrence J. Centola III and Scott Bickford of Martzell & Bickford.

The plaintiffs are represented by Patrick Pendley of Pendley Baudin & Coffin LLP and Brian Marcelle of Huber Slack Houghtaling Pandit & Thomas LLP.

Texas Brine is represented by Bradley C. Myers and M. Dwayne Johnson of Kean Miller LLP.

The Texas Brine Class Action Lawsuit is Lisa T. LeBlanc et al. v. Texas Brine Co. LLC et al., Case No. 2:12-cv-02059, in the U.S. District Court for the Eastern District of Louisiana.