Laguna Beach property owners file class action lawsuit against Amplify Energy
A class action lawsuit was filed Wednesday in federal court against Amplify Energy by Laguna Beach property owners, who argue that the company’s negligence in responding to the oil spill just off of Orange County’s coast has negatively affected their beachfront property.
The lawsuit names Amplify Energy and its subsidiary Beta Operating Co., LLC, as defendants in the matter.
The complaint reiterates previous reports of what occurred in the first few hours of the oil spill. Federal regulators said that employees in the control room of the subsidiary company that operates the San Pedro Bay Pipeline received a low-pressure alarm indicating a possible failure at around 2:30 a.m. Saturday.
Preliminary investigations by the Pipeline and Hazardous Materials Safety Administration revealed that it took more than three hours before the pipeline was shut off, followed by an additional three hours before the incident was reported to the National Response Center.
The exact cause of the leak is still under investigation, but attorneys argue that it “appears” the company did not promptly respond to signs of the pipeline’s failure or notify government agencies.
“That apparently delayed and inadequate response runs contrary to defendants’ oil spill response plan,” attorneys said.
The lawsuit also alleges the subsidiary has a history of reckless compliance violations and that both Amplify and Beta Operating knew of the dangers of transporting oil through a pipeline, but failed to take action to protect Laguna Beach property owners Stephen and Kristin Samuelian, SK5-Keller Legacy, LLC, and others.
“The oil spill caused by defendants caused crude oil to wash up on beaches from the ocean, including on the beaches near these plaintiffs’ beachfront property. The family members’ ability to use and enjoy it has been impaired,” the complaint reads. “These plaintiffs not only suffer present injury, but also suffer the concrete risk of imminent, additional injury.”
The class is currently defined in court documents as all beachfront properties and properties with a private easement to a beach, where oil from the San Pedro Bay Pipeline washed up following the oil spill that was reported on Oct. 2, 2021.
Attorney Barry Cappello said in a call Thursday that he expects the class is expected to represent anywhere from 2,000 to 4,000 property owners, depending on what happens with the spill.
Cappello said it’s uncertain when the case will actually see trial as it depends largely on the judge assigned to the case and because there’s no clear answer on the extent of the damages thus far.
“We want the facts to play out a little more. We want to make sure — this oil spill is still happening as we speak — to get to the point where there are no more individuals, properties, businesses, fishers, fish docks being affected,” he said, adding that he feels Amplify is “on the hook” for gross negligence or reckless conduct.
“They knew the oil spill occurred. They had an alarm, but didn’t shut the pipe off which just caused way more oil to hit the ocean. Amplify, as soon as they got the alarm, should have shut that pipeline down,” said Cappello.
Amplify Energy did not immediately reply to requests for comment.
Attorneys are seeking a jury trial and for all recoverable compensatory, statutory and other damages sustained by the plaintiffs and the class if certified. They are also seeking pre-judgment and post-judgment interest on any amounts rewarded, treble damages as applicable and for attorneys’ and experts’ fees.
The lawsuit also asks that an order be issued that prohibits the companies from operating the pipeline without adequate safety and response measures and ongoing monitoring.
This is the second class action lawsuit filed in federal court since the spill. The first was brought forward earlier this week by Huntington Beach resident Peter Moses Gutierrez Jr., who owns a DJ company that performs frequently on the beachfront. Gutierrez alleges lost wages and a potential exposure to health hazards.
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