Exxon Gas Leak Lawsuit Results in $495M Compensatory Award

A Maryland jury has awarded nearly $500 million in compensatory damages to families and businesses that were affected an underground gasoline leak in 2006, which contaminated well water and impacted property values in the area.  

The Maryland environmental tort lawsuit was filed by a group of 154 families and other property owners from Jacksonville, Maryland, who accused the Exxon-Mobile of trying to cover up the release of an estimated 25,000 gallons of unleaded gasoline from one of the lines that transported the gas to a fuel dispenser.

While no one has been reported ill from the release, property owners say that the spill will require many residents to receive medical monitoring for years to ensure their health and that the groundwater contamination has lowered property values in the area surrounding the now-defunct gas station.

The Baltimore County jury agreed with plaintiffs, finding that Exxon attempted to deceive the community about the nature of the incident, why the gas station was closed and the extent of the damage from the spill. The jury found Exxon responsible for the diminution of property value, fraud, negligence, nuisance, strict liability, trespass, and says the company should be held liable for those charges as well as emotional distress and paying for medical monitoring.

Deliberations continue today as the jury tries to decide on punitive damages and considers a request by plaintiffs that additional damages be awarded to punish the company and deter similar actions in the future.

Exxon-Mobil has argued that it has acted in good faith to clean up the spill and is working with the state to remediate the site, which is one of 515 leaking underground storage tank (LUST) remediation sites currently underway across the state, according to the U.S. Environmental Protection Agency.

When the spill first occurred, the company put up a sign saying that the station was closed for upgrades and did not immediately warn the public that there had been a spill. Monitoring wells close to the station contained 15 feet of gasoline when the leak was first discovered.

In 2008, Exxon-Mobil entered into a consent decree to clean up the site. And in 2009, the first group of families, involving about 90 plaintiffs, sued the company and received $150 million in compensatory awards. Exxon is currently challenging that verdict.