ELR Citation: 45 ELR 20079
No(s). 14-CV-00887 (E.D. La. Apr 20, 2015) (Fallon, J.)

A district court held that individuals who were not party to a 2008 settlement agreement between an oil company and more than 2,000 plaintiffs for personal injury claims as a result of oil operations are not entitled to the same settlement terms. Under the agreement, the oil company paid approximately $8,200,000 to 2,004 claimants for injuries allegedly caused by exposure to radioactive materials and other toxic and or hazardous materials. Of those 2,004 claimants who received settlement payments, approximately 1,691 were plaintiffs on the day the agreement was executed, and 313 individuals were "new" claimants. These 313 individuals were not named plaintiffs in the underlying lawsuit, but the company provided payment pursuant to the agreement's terms. Shortly thereafter, more than 1,000 individuals not named in the original lawsuit claimed they were also entitled to the terms of the agreement. The oil company refused to settle with them, and the court agreed that the settlement does not apply. The individuals are unable to offer any credible argument that the court should enforce the agreement in their favor. The individuals never became plaintiffs in the 2008 settlement and were not listed on an amended or supplemental petition as required by the clear terms of the agreement. And evidence that the oil company chose to settle with 313 claimants not named in the original lawsuit does not modify the agreement because Louisiana law requires any modification to be in writing. Likewise, the individuals cannot invoke detrimental reliance because Louisiana law requires a written agreement. And the court determined there is no ambiguity that would compel it to look to parol evidence to ascertain the agreement's meaning.