The U.S. Court of Appeals for the Second Circuit on July 26 upheld a $104.7 million damage award against Exxon Mobil for contaminating New York City water resources with the gasoline additive methyl tertiary butyl ether (MTBE). The ruling upholds a 2009 verdict against the oil company.
In rejecting an argument over whether New York City had standing, the appeals court wrote “It strikes us as illogical to conclude that a water provider suffers no injury-in-fact – and therefore cannot bring suit –until pollution becomes ‘so severe that it would be illegal to serve the water to the public.’ This is especially so in view of a New York water provider’s statutory duty and commonsense obligation to protect or remediate groundwater before contamination reaches the applicable MCL.”
Exxon Mobil also argued, among other things, that the Clean Air Act obligated its use of MTBE. The court rejected this argument, too, noting the lower court determined guilt not just on the company’s use of MTBE but also due to its failure to exercise ordinary care in preventing spills, among other factors.