|
|
12.10.99 00:00:50
Lobstermen to settle North Cape lawsuit
 The $10-million settlement was filed Wednesday in U.S. District Court and will not be finalized unless it is approved by Judge Ernest C. Torres.
By PETER B. LORD
Journal Environment Writer
PROVIDENCE -- About 110 Rhode Island lobstermen, quahoggers and others in the fish business have agreed to settle their damage suit against the companies responsible for the North Cape oil spill for $10 million.
The money is compensation for the millions of lobsters killed following the spill on Jan. 19, 1996, and it is designed to benefit fishermen until 2001, when scientists predict the fisheries will fully recover.
Lawyers on both sides say it's difficult to say how much each fisherman will receive. No one would reveal how much of the settlement goes toward legal fees.
What's more, each fisherman's claim differed. Some were less than $10,000 and others exceeded $100,000, according to Deming E. Sherman, attorney for Eklof Marine Corp. and related companies that owned the tug Scandia and the barge North Cape.
The settlement was filed Wednesday in U.S. District Court. It will not be finalized unless it is approved by U.S. District Court Judge Ernest C. Torres.
Thomas F. Holt Jr., lawyer for the lobstermen, said he advised his clients not to discuss the case until the settlement is approved by the judge. John Sorlien, president of the Rhode Island Lobstermen's Association, referred all questions to Holt.
The lobstermen announced their original $40-million lawsuit on the steps of the U.S. District Court here last January, on the third anniversary of the spill -- the worst in the state's history.
The lobstermen were frustrated because they saw lots of money changing hands, yet little was going to them -- the people most affected by the 828,000-gallon oil spill.
In the weeks following the spill, Eklof says it spent more than $10 million on cleanup efforts.
Two years ago, Eklof settled state and federal criminal charges against it by agreeing to pay a record $7 million in fines and $1.5 million to The Nature Conservancy to buy land for preservation around Matunuck, where the toxic oil washed ashore. The company was found negligent because it put a poorly equipped tug and barge to sea during a gale.
The company and its insurers paid several million dollars in insurance claims. And Eklof continues to negotiate with the government to restore the damage to natural resources caused by the spill -- that settlement could cost as much as $27.6 million.
``The frustration the lobstermen felt was that [Eklof] -- rather than stepping forward and attempting to resolve these claims -- was just taking too much time and, in the minds of some, not addressing valid claims in a timely and forthright way,'' Holt said.
By law, lobstermen not happy with settlements offered by Eklof could take their claims to the National Pollution Funds Center operated by the Coast Guard. But Holt said the federal agency was asking for as much proof as a court of law, rather than offering fast assistance.
``It became an administrative nightmare,'' Holt said. ``Rather than addressing the claims in a speedy way, it became apparent that going to the fund was going to be more time consuming and costly than filing a lawsuit. So we sued.''
Some of his clients have already received partial settlements totalling $2 million either from Eklof or the national fund, Holt said. So the 110 clients will actually share more than $12 million.
``We think this is fair, and it certainly is the most significant settlement reached in this case,'' Holt said. ``These civil damages exceed the amount of the criminal penalties.''
Sherman said Eklof has paid out about $6.7 million so far to settle damage claims. It still faces suits by a seafood store and a group of 9 or 10 other lobstermen. And it is negotiating with yet another small group of fishermen who are represented by lawyers, but haven't filed suit.
``I think this settlement is reasonable,'' Sherman said. ``We're pleased to see these funds get to the lobstermen.''
|
|
|
|
