Judge Certifies Exxon Pegasus Pipeline Class Action Lawsuit

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Earlier this week, the Arkansas federal judge presiding over the pipeline class action lawsuit against Exxon Mobile Corp. granted the proposed Class of homeowners allegedly affected by the rupture of the Exxon Pegasus pipeline near plaintiffs’ homes.

When the Pegasus pipeline ruptured in March 2013, more than 19,000 barrels of crude oil spilled into the surrounding land in Arkansas and could potentially affect homeowners in other states where the 650-mile long pipeline runs, beginning in Illinois and spanning through Texas. In light of arguments presented by the plaintiffs, U.S. District Judge Brian S. Miller granted partial class certification for current homeowners who possess an easement contract on their home property for the Exxon pipeline.

Exxon argued that the proposed Class of homeowners would not satisfy the Class requirement of commonality, an argument that also arose in Exxon’s motion to dismiss the Pegasus pipeline class action lawsuit last October.

According to the judge’s order for Class approval of the Pegasus pipeline class action lawsuit, “Here, plaintiffs set forth several issues common to the class, most notably whether Exxon has failed to properly operate and maintain the pipeline, and whether such failure constitutes breach of their easement contracts. The answers to these questions are central to the validity of all class members’ claims, and will provide class-wide resolution. Thus, plaintiffs have shown commonality.”

The Exxon pipeline class action lawsuit was originally filed in April 2013, a month after the Pegasus pipeline rupture, by Rudy and Betty Webb and Arnez and Charletha Harper, alleging that the easement contracts required Exxon to maintain the 650 miles of pipeline and that the company’s negligence and breach of contract resulted in the catastrophic oil spill, “the worst oil and tar sands spill in Arkansas history.”

According to the Exxon class action lawsuit, the Webbs and Harpers claim, “breach of contract, for which they seek either rescission of the easement contract, or specific performance,” which would require Exxon to replace the pipeline.

Exxon contested the Webbs and the Harpers as the Class representatives for the Exxon pipeline class action lawsuit, because while both couples own property with an easement contract, neither the Webbs’ nor the Harpers’ property sustained damage related to the oil spill. Additionally, Exxon contends that although Rudy and Betty Webb’s property has an easement contract attached to it, they do not have the pipeline running through the property itself.

Judge Miller did agree with Exxon that the Webbs could not act as Class representatives for Class Members who actually had pipeline running through their property. However, the judge did allow for the Harpers to stand as Class representatives because they had property subject to the easement contract and physically have part of the Exxon pipeline running through their property.

According to Judge Miller’s approval of the Exxon pipeline class certification, “now that the class has been narrowed to only include those individuals with both an easement and the pipeline on their property, it should be much simpler to ascertain who is actually affected.”

The proposed Class would include all person who own real property with an easement contract for the Pegasus pipeline and whose property the pipeline physically crosses from Patoka, IL, to Corsicana, TX.

The  plaintiffs are represented by Phillip Duncan, Richard Quintus, William R. Pointer, Justin C. Zachary and Timothy P. Reed of Duncan Firm PA and Thomas P. Thrash and Marcus N. Bozeman of Thrash Law Firm PA.

The Exxon Pipeline Class Action Lawsuit is Rudy F. Webb v. Exxon Mobil Corp., et al., Case No. 4:13-cv-00232, in the U.S. District Court for the Eastern District of Arkansas.