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Thursday, May 2, 2024

Certification denied in proposed class action over '15 Highland oil spill

Federal Court
Yandlecropped

Yandle

BENTON – U.S. District Judge Staci Yandle has denied certification of a class action over oil that spilled at Silver Lake near Highland in 2015.

“The fact that a spill occurred is, by itself, not sufficient to justify including everyone who lives or owns property in the vicinity of the oil spill path in the class,” Yandle wrote in an Oct. 5 order.

“The evidence shows that only 11 residential properties are located along the spill pathway with unresolved claims and plaintiffs provide no evidence that joinder is impracticable for the absent class member property owners.” 

The spill occurred when a fitting on a tube failed at a Plains All America Pipeline station west of Pocahontas. 

The 20-inch pipeline carries crude oil from Patoka to Wood River.   

The oil flowed down a ditch to a stream, to Silver Creek, and to Silver Lake. 

It touched 19 residential properties above the dam that formed the lake. 

The city of Highland, which owns the lake, closed it 12 days for response efforts. 

A park on the lake stayed open. 

With state and federal regulators on hand, Plains recovered most of the oil. 

Plains set up a claim process and settled with eight owners above the dam. 

Plains paid $350 to reimburse three boat owners for annual passes. 

In 2017, St. Louis lawyer John Driscoll sued Plains for Kevin Nodine, Cheryl Morr, and David Medlock.  

Driscoll, now with offices in Puerto Rico, alleged about $9 million in loss of property value and about $8 million in damage to society and the environment. 

He claimed oil spilled into a creek adjacent to Medlock’s property. 

He claimed oil harmed soil, groundwater, surface water, and sediments. 

He estimated that the spill impacted 380 residential parcels and 120 agricultural parcels, from Pocahontas to Grantfork and Highland. 

In 2018, lead plaintiff Nodine dismissed his claim. 

Plains moved to dismiss the complaint, and Yandle denied the motion in 2018. 

She found plaintiffs made viable claims for economic and punitive damages. 

In 2019, Driscoll’s associate Gregory Pals of Webster Groves, Mo. moved to certify Morr and Medlock as class representatives. 

He described the spill as a tragedy and a catastrophe. 

He claimed a class could be certified solely on the basis of closing Silver Lake for nearly two weeks. 

He estimated the class area at 4,400 households. 

Plains counsel David Schott of Edwardsville responded that those who didn’t own property connected to the pathway didn’t experience physical harm or any impact.

“Morr and Medlock do not use Silver Lake, and plaintiffs’ case is built around a loss of use,” Schott wrote.

“They are unique in having shoreline property.

“Finally, they are the only property owners still asserting a grievance against Plains following Plains’ successful cleanup, public outreach, and claims settlement process.” 

Yandle set trial but vacated the date, extended discovery, and stated she’d adopt a schedule after ruling on class certification. 

Pals withdrew last year. 

Yandle found in her current order that, “There is no evidence of physical injury to any property.” 

She found plaintiff expert Gary Rand testified he had no evidence that the spill adversely affected Highland’s water supply. 

She found he testified he had no evidence that crude oil or products of its degradation were present in the creek or the lake. 

She found the Illinois Environmental Protection Agency closed its file in April 2016, concluding that Plains addressed causation and remediation issues. 

She found class membership required nothing more than living in the geographic area since July 2015. 

She found the class definition might include individuals who would lack standing to maintain actions on their own behalf. 

“Plaintiffs are to proceed as individuals,” she wrote.

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