The People of the State of California, The City of Long Beach, as Trustee for the State of California, et. al. v. Chevron Corp., Unocal Corp., et al.
Published: Oct. 2, 1999 | Result Date: Aug. 30, 1999 | Filing Date: Jan. 1, 1900 |Case number: C587912 – $0
Judge
Court
L.A. Superior Central West
Attorneys
Plaintiff
Andrea E. Neuman
(Gibson, Dunn & Crutcher LLP)
Defendant
Joel N. Klevens
(Glaser, Weil, Fink, Howard, Avchen & Shapiro LLP)
Experts
Plaintiff
Kent Anderson
(technical)
Byron Spruell
(technical)
Iraj Ershershagi
(technical)
Defendant
Joseph Kalt
(technical)
Facts
In the mid 1960s, plaintiffs city of Long Beach and the State of California entered into two contracts with defendants Exxon Corporation, Mobil Oil Corporation, Texaco Inc., Unocal Corporation, Shell Oil Company and Chevron Corporation. One of the contracts had a term of 25 years, and the other had a term of 35 years. Under those contracts, the defendant oil companies had the right and the obligation to purchase oil from the Wilmington onshore and offshore oil field. The city of Long Beach, state of California and the People of the state of California brought this action against the Chevron, Unocal, Mobil, Shell Oil Company, Shell California Production Inc., Texaco, Exxon Corp. and Exxon Company U.S.A. based on bad faith and breach of contract. All defendants except Exxon settled in 1991 for approximately $345 million according to the defendant and $121 million according to the plaintiff.
Settlement Discussions
The plaintiffs made a C.C.P. º998 settlement demand for $105 million. The defendant made no offer.
Damages
The plaintiffs claimed $215 million to $285 million in damages.
Other Information
The verdict was reached approximately 13 years according to the plaintiff and 15 years according to the defendant, and six months after the case was filed. The case was first tried to a judge, who ruled for the defendant Exxon. The Court of Appeals reversed, and ruled that defendant Exxon would be responsible for any price manipulation or acts of bad faith committed by any of the oil companies who were its partners.
Deliberation
16 days
Poll
10-2 (no bad faith) , 11-1, (reasonable worth), 12-0 (reasonable worth)
Length
eight weeks
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