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Keywords

contractdefendantdamagesliabilitytrialpunitive damagesbench trial

plaintiffdefendantdamagesstatutetrialpunitive damages

Related Cases

Arabie v. CITGO Petroleum Corp., 89 So.3d 307, 2010-2605 (La. 3/13/12)

Facts

On June 18-19, 2006, a severe rainstorm caused the wastewater treatment facility at CITGO's refinery in Lake Charles, Louisiana, to overflow, resulting in a major oil spill. Over 21 million gallons of waste, including 4.2 million gallons of slop oil, escaped, contaminating over 100 miles of shoreline. Fourteen construction workers, employed at a nearby site, filed suit against CITGO and its contractor, alleging injuries from exposure to toxic chemicals from the spill. The defendants admitted liability for the spill, and after a bench trial, the court awarded damages to the workers.

On the night of June 18 and the morning of June 19, 2006, southwest Louisiana experienced a severe rainstorm. As a consequence of the storm, the stormwater drainage and storage system, including the wastewater treatment facility, at the Lake Charles, Louisiana, refinery of defendant, CITGO Petroleum Company (CITGO), was filled beyond available capacity and overflowed, resulting in a major oil spill.

Issue

Whether the trial court erred in its allocation of fault, in awarding damages for fear of future injury, and in applying punitive damages law from Texas or Oklahoma instead of Louisiana.

We granted this writ application in order to determine whether the courts below erred as to the allocation of fault, in awarding damages for fear of future injury, and in awarding punitive damages.

Rule

Punitive damages may only be awarded under Louisiana law if authorized by the law of the state where the injurious conduct occurred, the law of the state where the injury occurred, or the law of the place where the person who caused the injury was domiciled.

Punitive damages may not be awarded by Louisiana courts except when two of the following three are present: (1) Punitive damages are authorized by the law of the state where the injurious conduct occurred (2) Punitives are authorized by the law of the state where the injury occurred (3) Punitives are authorized by the law of the place where the person who caused the injury was domiciled.

Analysis

The court determined that CITGO was a domiciliary of Louisiana, as it operated a refinery there and the injuries occurred in Louisiana. The court found that the trial court's application of Texas or Oklahoma punitive damages law was erroneous because both the injurious conduct and the resulting injuries occurred in Louisiana, which does not authorize punitive damages under the circumstances of this case.

The trial court, in its reasons for judgment, began its analysis of whether another state's punitive damages law should apply in this case by recognizing that punitive damages are not allowable unless expressly authorized by statute.

Conclusion

The Supreme Court affirmed the trial court's findings regarding liability and damages for fear of future injury but reversed the application of Texas punitive damages law, holding that Louisiana law applied.

For the reasons which follow, we affirm in part, reverse in part, and render judgment.

Who won?

The workers prevailed in the case because the court found substantial evidence supporting their claims of injury due to the oil spill and upheld the trial court's award of damages.

The court awarded plaintiffs general damages, including damages for fear of developing cancer in the future, ranging from $7000 to $15,000.

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