Aaron v. Exxon Mobil Corp.
| Decision Date | 27 December 2018 |
| Docket Number | 2018 CW 0476 |
| Citation | 271 So.3d 205 |
| Parties | Andre AARON, et al. v. EXXON MOBIL CORPORATION Andre Aaron, et al. v. ExxonMobil, Corporation f/k/a Exxon Company U.S.A., Exxon Corporation Gloria H. Poole, et al. v. ExxonMobil, Corporation f/k/a Exxon Company U.S.A., Exxon Corporation Andre Aaron, et al. v. ExxonMobil, Corporation f/k/a Exxon Company U.S.A., Exxon Corporation Ayanna Abadie, et al. v. ExxonMobil, Corporation f/k/a Exxon Company U.S.A., Exxon Corporation Adelean Mcalope, et al. v. ExxonMobil, Corporation f/k/a Exxon Company U.S.A., Exxon Corporation |
| Court | Court of Appeal of Louisiana — District of US |
Martin A. Stern, Raymond P. Ward, New Orleans, Louisiana, Kellen J. Mathews, Baton Rouge, Louisiana, Michael P. Cash, Wade T. Howard, Houston, Texas, Attorneys for Relator, Defendant - ExxonMobil, Corporation f/k/a Exxon Company, U.S.A., Exxon Corporation
Calvin C. Fayard, Jr., Denham Springs, Louisiana, Lewis O. Unglesby, Baton Rouge, Louisiana, Rebecca Cunard, Baton Rouge, Louisiana, Roy F. Amedee, Jr., New Orleans, Louisiana, David S. Scalia, River Ridge, Louisiana, Attorneys for Respondents, Plaintiffs - Andre Aaron, et al., Ayanna Abadie, et al., Adelean, McAlope, et al., and Gloria H., Poole, et al.
Before: Pettigrew, Welch, and Chutz, JJ.
This matter comes to us on transfer from the Louisiana Supreme Court for briefing, argument, and full opinion under this Court's supervisory jurisdiction.1 See Aaron v. Exxon Mobil Corp. , 2018-0009 (La. 3/9/18), 237 So.3d 1184. This is a mass tort suit involving several consolidated lawsuits filed in Baton Rouge City Court ("city court") that were appealed to the Nineteenth Judicial District Court ("19th JDC"). The litigation arises out of a fire that occurred at the ExxonMobil, Corporation ("Exxon") refinery in Baton Rouge on August 2, 1993. This appeal involves six plaintiffs who proceeded to trial together ("trial plaintiffs"). The defendant, Exxon, appeals the city court's May 1, 2017 judgment after remand, finding that Exxon was 100% at fault and liable to the trial plaintiffs for damages.
For the reasons set forth more fully below, we find that the city court did not manifestly err in allocating 100% fault to Exxon after remand. We further find that the city court did not abuse its vast discretion in fixing the amount of general damages awarded. Accordingly, the writ application is denied; the judgment after remand is affirmed.
This case arises from a pipe failure and rupture that resulted in a fire at the Exxon refinery in Baton Rouge on August 2, 1993, at approximately 4:15 a.m. The fire occurred in the East Coker Unit of the Exxon refinery—one of three coker units at the refinery—which converted high-sulfur, heavy crude oil into gasoline, diesel, and jet fuel. A carbon steel piping elbow that was a component part of the East Coker Unit ruptured, causing an explosion. Two minutes later, escaping hydrocarbon gases ignited, causing a fire. Six minutes later, a nearby flushing oil line ruptured, releasing additional fuel for the fire. Around 6:40 a.m., the main part of the fire was extinguished. Smaller fires, producing no visible smoke, continued to bum until around 8:30 a.m. Two Exxon employees died as a result of the explosion and fire.
The Exxon refinery is located on Scenic Highway in Baton Rouge, directly across the street from a densely populated residential community. During the two and a half hours the main fire burned, the fire produced a thick smoke plume, which moved in an easterly direction across the community adjacent to the facility. The explosion and fire also released ash and debris. The debris, including asbestos particles, was spewed from the East Coker Unit and scattered about the residential community located across the street from the refinery. The ash and debris landed on the people and property of the community.
Law enforcement and fire department personnel, other emergency agencies, and stakeholders in the community, as well as Exxon staff, merged into the affected area and surrounding properties with emergency vehicles and equipment. Exxon dispatched personnel to conduct air sampling both inside the facility and in the surrounding community during the time of the fire. Exxon also set up several fixed-station monitors that picked up trace amounts of hydrogen sulfide and carbon monoxide near the refinery's east gate. The only substance picked up at measurable levels was carbon particulate—smoke.
First responders clad in white "space type" protective jumpsuits inspected the community and retrieved contaminated debris and postulate matter in the atmosphere that had been scattered by the explosion and resulting fire. Residents were notified to "shelter in place" and turn off their air conditioning units and refrain from touching debris that had landed on and covered their property.
The East Coker Unit was designed, constructed, and inspected by Foster Wheeler Corporation ("Foster Wheeler") in 1962 and 1963. Following the completion of construction, Humble Oil and Refining Company ("Humble Oil"), Exxon's predecessor in interest, accepted the work and began operation of the East Coker Unit in 1963, which continued until its destruction by the fire on August 2, 1993.2
The East Coker Unit was a typical four drum coker unit that contained approximately forty-one miles of pipe and tubing and approximately ten thousand connecting elbows. The undisputed cause of the fire was the failure of a six-inch, forty-five degree carbon steel piping elbow in the pipe spool for Pump P-2A/B discharge piping, located in the East Coker Unit, which was installed as part of the unit's original construction, thirty years prior to the fire. According to Foster Wheeler's design specifications, the piping elbow that ruptured and caused the fire should have been manufactured of steel containing five percent chromium and one-half percent molybdenum. The chrome-moly material, unlike carbon steel, resists corrosion caused by the sulfur in heavy crude oil. Contrary to its own design specifications, however, the piping elbow installed by Foster Wheeler was manufactured of carbon steel, a material more susceptible to corrosion than chrome-moly steel.
The piping in the East Coker Unit was installed by local pipe fitters subcontracted by Foster Wheeler. After installation, the piping circuit containing the incorrect carbon steel elbow was covered with asbestos insulation, and once covered, was hidden from visual inspection. The carbon steel elbow performed for thirty years, until it ruptured on August 2, 1993, causing the explosion and fire that destroyed the East Coker Unit.
Litigation resulting from the explosion and fire was brought in both federal and state courts. A putative class action was originally filed in the 19th JDC against Exxon and Foster Wheeler, which was removed to the United States District Court for the Middle District of Louisiana. The putative class members sought damages allegedly sustained as a result of the pipe rupture and resulting fire. In that same matter, Exxon asserted a third-party claim against Foster Wheeler based on Foster Wheeler's design and construction of the East Coker Unit.3 Ultimately, the federal district court dismissed the plaintiffs' claims against Foster Wheeler and also dismissed Exxon's third-party claim against Foster Wheeler on the grounds of the ten-year peremptive period applicable to claims based on construction.4 See La. R.S. 9:2772 (). A companion suit was filed in the 19th JDC regarding Exxon's claims against Foster Wheeler, wherein the district court similarly dismissed Exxon's claims against Foster Wheeler on the grounds of the ten-year peremptive period applicable to claims based on construction.5
With Exxon as the sole remaining defendant, the federal district court denied class certification, and following a bench trial, rendered judgment in favor of Exxon and against the plaintiffs, holding that Exxon was not liable to the plaintiffs for their alleged injuries under either a strict liability theory or negligence theory.6 The United States Court of Appeals for the Fifth Circuit affirmed.7
On April 20, 2007—prior to the handing down of the aforementioned decision by the federal district court—approximately 8,500 plaintiffs who lived near the Exxon refinery at the time of the explosion and resulting fire filed three mass tort lawsuits against Exxon in city court, which are the subject of the instant supervisory writ application. The first suit was filed by 4,172 plaintiffs against Exxon.8 The second suit was filed by 2,939 plaintiffs against Exxon.9 The third suit was filed on behalf of 1,450 minor plaintiffs against Exxon.10 The plaintiffs alleged that Exxon was liable under theories of negligence pursuant to La. C.C. art. 231511 and strict liability pursuant to La. C.C. arts. 2317 and 232212 for all of their injuries and damages caused by the explosion and fire. The plaintiffs contended that they suffered damages including "personal injury, past and future pain and suffering, past and future medical expenses, mental anguish and emotional distress, damage to their homes and structures, diminution in the value of their property, other economic damages, loss of society and quality of life, loss of community[,] and other damages to be set forth and established" due to Exxon's negligence. The plaintiffs also alleged that the "explosion and fire caused the release of noxious and toxic chemicals, which permeated the atmosphere over the area adjacent to the Exxon refinery site and into the surrounding communities," which caused injuries to the plaintiffs including "considerable fear, mental anguish, uncertainty[,] and inconvenience of the populace of the communities surrounding the refinery site...." The city court consolidated the three suits and transferred the matter to ...
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... ... Malta v. Herbert S. Hiller Corp ., 2021-00209, p. 21 (La. 12/10/21), 333 So.3d 384, 40001, reh'g denied , ... Aaron v. Exxon Mobil Corp ., 2018-0476, p. 18 (La.App. 1 Cir. 12/27/18), 271 ... ...