Oil Spill Lawsuits & Claims

Oil spills are among the most visibly devastating human-made disasters. They cause tremendous damage to ecosystems, animal health, human health, property, businesses, and communities. The financial toll of addressing these disasters can be catastrophic for governments, environmental groups, and property owners, sometimes resulting in billions of dollars in damage. Individuals affected by oil spills file lawsuits to recoup damages to their health and property. These lawsuits often allege negligence by oil companies or their subcontractors. Many people have to file claims after oil spills affect their lives.

About the Oil Spill Lawsuits:

Oil Spill Lawsuits

Oil spill lawsuits are filed against the companies that are responsible for operating and maintaining the equipment used in the extraction or transportation of petroleum. These lawsuits often allege negligence on the part of these companies, whether through poor processes, maintenance failures or failing to disclose important information to the public.

People are filing lawsuits to address the disastrous effects of oil spills. These spills cause not only environmental and health damage, but they can also disrupt local economies dependent on tourism, fishing, or nearby natural resources. Oil spills can leak toxic chemicals, including hydrocarbons like benzene, toluene, and xylene, into the environment. These contaminants can have long-term implications on animal and human health.

The lawsuits may seek damages for losses related to the oil spill, including medical bills, personal injury, economic losses, lost business revenue, and property damage.

Why Do People File Oil Spill Lawsuits?

Losses from oil spills can be catastrophic, damaging coastal waters and the communities that rely on them. For example, the 2010 Deepwater Horizon spill off the coast of Alabama was estimated to have caused $17.2 billion in damages. Oil spills can result in the following damages:

• Death of local wildlife including fish, turtles, dolphins, birds, coral, snails, and worms
• Damage to marshes
• Loss of tourism, especially for beaches and waterfront businesses
• Health problems suffered by workers or affected property owners. These health problems included respiratory issues, hypertension, heart disease, depression, and difficulty concentrating

Successful lawsuits against the companies responsible for oil spills can help compensate the communities and individuals for their economic losses, as well as their personal injuries and pain and suffering.

What is an Oil Spill?

An oil spill is the release of liquid petroleum into the surrounding environment. Oil spills are often maritime events, with the hydrocarbons leaking from an oil rig or tanker into coastal waters. However, oil spills can also happen on land due to events like pipeline ruptures and train derailments.

The scale of these spills can be massive, involving millions of gallons of oil. These large-scale pollution events can contaminate water and land and sicken or kill plant and animal life.

How Do Oil Spills Happen?

Oil spills can have a variety of causes, ranging from human error to equipment failures. Sometimes, a secondary factor, like an earthquake or a storm, can put additional stress on equipment and personnel, increasing the likelihood of an oil spill.

Human Error

When people who maintain equipment responsible for oil production make mistakes, it can have devastating consequences. Sometimes, human error is responsible for oil spills. People working in the oil industry may make mistakes while operating machinery, loading or unloading vehicles, or maintaining equipment and vehicles used in oil transport and production. These mistakes can cause unintended releases of oil or oil products into the surrounding environment.

Equipment Failures

Equipment failure is another common cause of oil spills. Whether through wear-and-tear, manufacturing flaws, poor upkeep, or damage from natural disasters, equipment involved in oil production and transport can malfunction. For example, a ruptured pipeline or a leaking valve or storage tank can allow oil to seep into the surrounding environment.

Leaks from Tankers and Boats

Oil spills can also occur when petroleum is transported by tankers or boats over the water, or by trains and trucks overland. Human error, equipment malfunctions, or unforeseen circumstances can lead to collisions and container failures that release oil.

Underwater Pipeline Leaks

Oil pipeline leaks, whether underwater or over land, can be another source of oil spills. Pipelines can fail for a number of reasons, including internal or external corrosion, natural forces, outside forces (like impacts), poor welding, or improper operation.

Natural Disasters

Natural disasters place significant stress on oil infrastructure. Pipelines can be destabilized by landslides, earthquakes, and flooding. Oil rigs can be damaged by hurricanes. Tornadoes can damage containers. Even minor environmental stressors like erosion and shifting seabeds can deform pipelines over time and cause them to malfunction and release oil.

What Damages Do Oil Spills Cause?

Oil spills can cause enormous damage at the spill site and to nearby environments. Toxic chemicals present in liquid hydrocarbons can harm sea life, birds, wetlands, and other animals in or near the environment. Humans are also vulnerable, particularly those who live near the affected area or are involved in the cleanup. Damage from oil spills is not limited to contact or ingestion. Hydrocarbon fumes in the air can also negatively affect health.

In addition to the environmental and health impacts, oil spills can impose huge economic costs by rendering beaches, wetlands, or tracts of land unusable for fishing, farming, recreation, or building. The cleanup itself is an expensive proposition due to the viscosity (stickiness) of oil, which makes it difficult to remove mechanically, especially in remote environments.

Environmental Damages

Oil spills have immediate and long-term impacts on the environment. These spills introduce chemicals that are not normally present in an ecosystem in substantial quantities. Environmental damages from oil spills include:

• Injuries to Animals: Oil can cause injury to animals through both physical and biochemical means. Oil can coat fur and feathers, reducing an animal’s ability to insulate itself. Smaller organisms can be smothered by oil. Chemicals in oil can also interfere with the ability of fish to reproduce. Compounds commonly found in oil are toxic and may poison animals or have carcinogenic effects over the long term.
• Soil Damage: Oil can alter the composition of soil, leaving it less fertile for decades. It can also make it harder for the soil to retain water, drying out its upper layers. This can make it harder for plants to thrive in the affected area.
• Air Pollution: Volatile organic compounds present in oil, like benzene, xylene, and toluene, are released during oil spills. These chemicals can irritate the eyes, nose, and lungs, causing respiratory distress and lightheadedness from short-term exposure. Long-term exposure may cause serious health effects like cancer.
• Marine Life/Shoreline Damage: Sensitive marine life, like coral, is particularly vulnerable to oil spills. As small organisms, corals can be suffocated. Oil damage to their tissue can also leave them more vulnerable to bacterial infections. Hydrocarbons can interfere with their reproductive cycles. The loss of protective coral reefs can lead to increased shoreline erosion.
• Long-term Pollution & Water Contamination: Oil spill contamination can be persistent, with some compounds sinking and contaminating sediments on the seabed. These sediments can be stirred up during storms, contaminating even marine life that lives far above the seafloor for years to come.

Economic Damages

Oil spills are also expensive, inflicting significant economic losses on local communities and the entities responsible for cleaning them. Economic damages associated with oil spills include:

• Fishing and aquaculture losses: Oil spills can kill fish and crustaceans that form the backbone of local commercial and subsistence fishing economies. Oil spills can also make fish or shellfish unsafe to eat, causing additional economic damages.
• Tourism decline: Beaches near oil spills may become unusable, reducing tourism. Even in cases where the beaches are not directly fouled, news coverage of nearby oil spills may impact tourism.
• Clean-up costs: Remediation after an oil spill is typically very expensive, although costs vary depending on the size and location of the spill, as well as the type of oil involved. It is much more expensive to clean up a gallon of spilled oil than it is to produce a gallon of oil.
• Property damage: Oil can damage boats, docks, beaches, and coastal infrastructure. Oil spills on land can result in befouled soil, tainted water sources, and damage to agriculture.

Health and Safety Damages

Although humans tend not to be as directly exposed to oil spills as marine life, people do suffer injuries and illnesses from oil spills. These may take the form of:

• Toxic exposure: Cleanup crews and property owners near the oil spill may suffer health effects from toxic fumes, prolonged contact, or tainted drinking water. Health effects may include respiratory issues, neurological damage, and increased risk of cancer.
• Food safety concerns: Contaminated seafood or food from contaminated agricultural lands may be unsafe to eat. Contaminated sediments can continue to taint fish for many years after the spill.
• Mental health effects: Economic damages and disruptions to a community’s way of life, and the prolonged grind of cleaning up an oil spill can lead to depression, anxiety, and other mental health effects.

Oil Spill Costs and Recovery Efforts

Oil spill cleanups are a complex and resource-intensive process. Clean-up costs can range from thousands of dollars for a small, simple spill to tens of billions of dollars for a large, difficult one like the Deepwater Horizon spill. A 1987 study found the cost to range between $28 to $9,400 per barrel in inflation-adjusted dollars. In most cases, the polluter is responsible for the clean-up costs, though certain types of accidents and limited liability can shield these entities from some of the costs.

Early oil spill intervention usually involves containing the spill. Once the spill is contained, the oil can be mechanically removed from the water or soil. Some cleanup methods may employ chemicals or microorganisms to help break down the oil. Controlled burns may also be used to address spills.

Who Can File An Oil Spill Lawsuit?

Individuals who are exposed to damages related to an oil spill may be able to file a lawsuit. Workers, business owners,, and property owners may all be eligible to file a claim. Government agencies may also sue the polluter to recoup costs related to emergency responses, damage to natural resources, or regulatory enforcement.

Equipment Workers

People who operate oil equipment may be able to file lawsuits. This category of people includes individuals who worked in oil extraction or transportation (e.g., oil rig workers, train operators, or truck drivers.) These workers may be eligible to file a lawsuit due to unsafe working conditions that exposed them to toxic chemicals, injury from failing equipment, or harm suffered in a fire or explosion. Claims may include personal injury, negligence, wrongful death, or having to work in an unsafe workplace.

Clean-up Workers

Clean-up workers who respond to oil spills may be put in harm’s way. As they are dealing with toxic chemicals, they are at heightened risk of injury and long-term health issues. The risk of these injuries increases if they don’t receive proper protective equipment or training.

Property Owners

Property owners in the affected area may incur direct or indirect costs related to the oil spill. This may include damage to private property, property devaluation, trespass, and nuisance related to the cleanup efforts. An owner may also have out-of-pocket expenses from protecting their property from the spill.

Business Owners

Businesses that suffer a loss of income due to disruptions related to the oil spill may be able to sue for economic damages. Causes of economic loss may include:

• Decline in tourism
• Bans on fishing
• Supply chain disruptions

Government Agencies

Government agencies like the Environmental Protection Agency may sue the polluter on behalf of the public interest. They may seek to recoup costs related to public health expenses and damage to natural resources.

Notable Oil Spills In U.S. History

Oil spills vary greatly in size, but the bigger ones are infamous for the damage they caused and the associated cleanup costs. Here are some of the most notorious oil spills in United States history.

Exxon Valdez Oil Spill

The Exxon Valdez was an oil tanker that ran aground in shallow waters off the coast of Alaska on March 24, 1989. The tanker leaked 11 million gallons of oil into coastal waters, affecting over 1,300 miles of shoreline. Some of the marine life affected by the spill has still not recovered.

Deepwater Horizon Oil Spill

The Deepwater Horizon was an oil rig that exploded 41 miles off the coast of Louisiana in the Gulf of Mexico on April 20, 2010 This explosion and its aftermath killed 11 people and leaked 168 million gallons of oil into the surrounding waters before it was sealed in June of the same year. To this date, it is the largest marine oil spill in history. The damage to marine and coastal life was extensive, particularly to snails, crabs, shrimp, oysters, and bottom-feeding fish like flounder. The incident also damaged salt marshes, accelerating coastal erosion.

Huntington Beach Oil Spill

Not all oil spills have as readily noticeable causes. The leaking San Pedro pipeline, about 3.5 miles away from Huntington Beach, California, spilled almost 28,000 gallons of oil into the Pacific. The leak was detected on October 1, 2021. The spill’s proximity to a major population center closed beaches and harbors and damaged the local fishing economy. Local wildlife suffered extensive damage, with over 116 dead birds recovered.

BNSF Railway Train Collision and Oil Spill in Casselton, North Dakota

On June 22, 2018, an eastbound Burlington Northern Santa Fe (BNSF) train carrying tar sands crude oil collided with a westbound train carrying grain near Casselton, North Dakota. The resulting derailment spilled 476,000 gallons of oil, some of which pooled and caught on fire. Over 1,500 residents needed to be evacuated from the resulting air pollution.

What Damages Can an Oil Spill Lawsuit Cover?

Oil spill lawsuits can cover different types of losses, ranging from personal injury to environmental and property damage. Businesses who incurred losses from an oil spill can often recover damages from a lawsuit.

Personal Injury

Individuals who come into contact with toxic chemicals during an oil spill may have grounds to sue for personal injury.  Exposure to toxins can occur through physical contact, ingestion, or inhalation. Exposure to these chemicals can lead to respiratory problems, neurological damage, skin problems, and an increased risk of cancer. A personal injury lawsuit related to an oil spill may seek damages for medical bills, pain and suffering, or lost wages.

Wrongful Death

A wrongful death claim may be made by family members if an individual dies from causes related to an oil spill, such as exposure to chemicals, or during the precipitating accident that caused the spill, such as an explosion, collision, or collapse.  The family members may seek compensation for funeral services, loss of financial support, and emotional suffering.

Property Damage

Oil spills can cause physical, chemical, or financial damage to property, including boats, docks, land, and wetlands. Property owners affected by the spill may sue for cleanup costs, loss of property value, and long-term environmental damage.

Coastline/Marine Damage

Federal, state, or local governments or organizations may sue for damages to ecosystems caused by the oil spill. These lawsuits may seek to recoup costs related to the cleanup and restoration of the environment and to penalize the polluter for inflicting ecological losses on their jurisdiction.

Personal Financial Losses

Oil spills can result in personal financial losses, whether due to health impacts, property damage, or loss of business. Individuals experiencing such losses may seek compensation through a lawsuit.

Business Losses

Businesses in the proximity of an oil spill are often disrupted, leading to a loss of income. Fisheries may be contaminated, or natural resources cut off. Restaurants and hospitality businesses may suffer from a decline in tourism. These effects can be long-reaching if the area develops a negative reputation due to the oil spill. Affected businesses may sue for their economic losses.

Historical Oil Spill Lawsuits and Settlements

The scale and breadth of damage caused by large oil spills can often be measured in billions of dollars. If found liable, polluters can be on the hook for enormous sums of money. Some of the most historic examples include:

BP: Deepwater Horizon Oil Spill Lawsuit and Settlement

Here is a summary of lawsuits and settlements related to the BP Deepwater Horizon oil spill.

Lawsuits Filed By:

• Federal and State Governments: For Clean Water Act violations and environmental damage.
• Businesses and Individuals: For economic losses (tourism, fishing, real estate).
• Environmental Groups: Over long-term ecological damage.

Legal Outcomes:

• BP agreed to pay more than $20 billion in a settlement with the U.S. government (largest in U.S. history).
• Billions more were paid out to businesses and individuals under a court-supervised settlement program.

Exxon Mobil: Exxon Valdez Oil Spill Lawsuits and Settlements

Here is a summary of lawsuits and settlements related to the Exxon Valdez oil spill.

Lawsuits Filed By:

• U.S. Government and State of Alaska: For cleanup and restoration costs.
• Fishermen, Natives, and Businesses: For economic and environmental damages.

Legal Outcomes:

• Exxon paid $1 billion in settlements to the federal and state governments.
• InitiallyExxon was ordered to pay $5 billion in punitive damages, but that number was later reduced by the U.S. Supreme Court to $507.5 million.

Lawsuits Against Oil Rig Equipment Manufacturers

Oil extraction, refinement, and transportation are complex systems involving oil rig owners/operators, equipment manufacturers, construction contractors, and transportation companies. Any of these parties can be at fault or partially at fault for an oil spill.

The Deepwater Horizon oil spill lawsuit is an example of a lawsuit where multiple parties were found liable for the spill. Here is a summary

Legal Outcomes:

• Transocean (owner/operator) paid $1.4 billion in penalties and settlements.
• Halliburton (cement contractor) paid $1.1 billion into a settlement fund.
• Cameron International (a blowout preventer manufacturer) paid $250 million to settle claims without admitting liability.

How Lawyers Can Help People With Oil Spill Lawsuits

Whether you are an injured oil industry worker, a clean-up worker exposed to toxic chemicals, or a resident of a community affected by an oil spill, you may have grounds for a lawsuit. However, filing an oil spill lawsuit is a complex process that requires quality evidence and adherence to process, including filing within the statute of limitations. A law firm with oil spill or environmental law experience can help you navigate the process and gauge the strength of your claim. Our attorneys and legal partners have years of experience going up against oil companies and winning cases.

Frequently Asked Questions (FAQs)