AG to investigate oil spill, marine businesses file class actions

As California Attorney General Rob Bonta announced an investigation into the oil spill off the coast of Orange County, commercial fisheries and tackle companies filed class actions in federal court against the energy company that owns the pipeline.

Powerhouse plaintiffs' firms Lieff Cabraser Heimann & Bernstein and Robertson & Associates LLP in Westlake Village teamed up to file the class action on behalf of a proposed class of commercial fisheries, marine charters and property owners.

"I grew up in Newport and Laguna Beach, where I learned to surf and fish as a teenager," Alexander Robertson said. "Anyone who has lived here understands how special it is and has a deep connection to the ocean and beaches. To think that this oil spill could have been averted is deeply disturbing and I look forward to helping hold the responsible parties accountable for this horrific environmental disaster."

On Monday, the city of Huntington Beach announced recreational fishing between Sunset Beach and Dana Point 6 miles from the shoreline is prohibited due to the spill and cleanup efforts. City and state beaches have reopened, after the coastal ocean and wetlands water quality testing showed non-detectable amounts of oil-associated toxins, officials said.

An underwater oil pipeline owned by Houston-based Amplify Energy Co. located 5 miles off Huntington Beach spilled 25,000 gallons of crude oil into the ocean on Oct. 1, according to the latest official estimates. The spill is believed to have been the result of a tear in a pipeline caused by the dragging anchor of a cargo ship.

The latest class action filings state that Amplify Energy has been cited for more than 125 safety violations since 1980, with the latest warning issued on Sept. 29. The plaintiffs also say Amplify Energy delayed responding to the spill and reporting to investigating authorities.

Amplify Energy officials have stated they responded and reported promptly.

The waters are home to hundreds of whales, turtles and commercial fish and shellfish, which will now impact the plaintiffs' businesses, the lawsuit stated.

Lieff Cabraser partner Lexi J. Hazam said there must be at least six weeks of testing to determine when recreational and commercial fishing can resume. Davey's Locker Sportfishing Inc. et al v. Amplify Energy Co., 8:21-cv-1684 (C.D. Cal., filed Oct. 11, 2021).

The fisheries seek damages for alleged negligent interference with prospective economic damages, federal oil spill prevention laws, nuisance and trespass.

"Lobster season has just reopened, and that's the biggest season for the commercial fishing industry. It's been an incredibly difficult experience for these fishers," Hazam said. "We hope the [state attorney general] is taking this very seriously and the appropriate resources are devoted to it, because this incident warrants it. We've got a company with poor safety records that requires government enforcement, and we support these official probes."

Bonta said in a news conference Monday that his investigation "will determine who is ultimately responsible."

"Drilling is about the past as we work to transition to a clean, healthy and green future," Bonta said.

Joseph R. Saveri of the Joseph Saveri Law Firm also filed a $200 million proposed class action Monday against Amplify Energy on behalf of tackle businesses. Ketcham Tackle LLC v. Amplify Energy Corp., 8:21-cv-1685 (C.D. Cal., filed Oct. 11, 2021). Saveri teamed with Jeff S. Westerman of Westerman Law Corp. in Encino, and Stuart G. Gross of Gross & Klein LLP in San Francisco.

"The conduct of each defendant was a substantial factor in causing and exacerbating the breach, and consequently in causing damage to the communities and businesses which are along the coast and depend upon the ocean and shoreline for their livelihoods," Saveri wrote in the complaint. "And this failure by defendants is just the latest instance of them flagrantly violating reasonable standards of due care while choosing profits over safety."

U.S. District Judge David O. Carter of the Central District of California has been assigned to all oil spill class actions filed so far.