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NJ municipalities, utility authorities, and water companies win multi-million dollar federal lawsuit against big oil companies.
Marlton, NJ - Attorneys from Parker McCay are pleased to announce a federal settlement has been reached in a lawsuit involving contaminated groundwater in the State of New Jersey.

Municipalities, utility authorities and water companies from New Jersey and 16 other states filed claims for contamination of drinking water supplies with Methyl Tertiary Butyl Ether or MTBE. MTBE is a flammable liquid with a distinctive disagreeable odor similar to turpentine. It is made from blending chemicals such as isobutylene and methanol and has been used since the 1980s as an additive for unleaded gasoline to achieve more efficient burning. MTBE is banned in some states.

All of these cases were eventually consolidated into one case in New York Federal court under what is known as The Multi District Litigation Program. The result was a $422 million settlement with about $67 million going to New Jersey claimants. Parker McCay represented a majority of South Jersey plaintiffs in the suit, winning approximately $40-45 million for its clients.

The defendants in the case were primarily the major oil companies. "Given the impact of MTBE in public water supplies, we thought it was important to take this case on behalf of public entities and water companies and make the oil companies pay for the clean up as opposed to taxpayers and rate payers," says Parker McCay attorney John C. Gillespie, who represented local parties.

Parker McCay attorney Joseph J. McGovern also represented the plaintiffs in the lawsuit.

"This settlement is a major victory for the citizens of the State of New Jersey," Mr. McGovern says. "Groundwater is a natural resource that belongs to the citizens. Unfortunately, ever since the major oil companies introduced MTBE into their products, that natural resource has been severely degraded."

The case is not over yet because several of the defendants, including Exxon Mobil, have rejected the settlement and intend to go to trial. The remaining defendants, representing approximately seventy percent of the market share of the MTBE case, have settled, including Chevron, Shell Oil Co., and BP.

"So, we're happy to see that this settlement will go a long way to restoring the quality of the groundwater in New Jersey," Mr. McGovern says. "By doing so, it will ensure clean and safe drinking water supplies for the residents, now and in the future."

Parker McCay clients participating in the settlement include the following:

New Jersey American Water Co., Inc.
Mt. Holly Water Co
Elizabeth Town Water Co.
Borough of Penns Grove
Borough of Point Pleasant
City of Bridgeton
City of Camden
City of Gloucester
Little Egg Harbor MUA
Mount Laurel MUA
Southeast Morris County MUA
United Water Vernon Hills Inc.
United Water Hampton Inc.
United Water New Jersey, Inc.
United Water Toms River Inc.
United Water Arlington Hills Inc.
(All of the United Water are owned and operated by a United Water parent company)

Parker McCay provides comprehensive legal services to a wide array of clients in such specialties as litigation, public finance, corporate, governmental and regulatory affairs. The firm also provides counsel to clients in the fields of banking, real estate, land use, healthcare, creditors' rights and employment law. Parker McCay is headquartered in Marlton, N.J. with offices in Lawrenceville, N.J. and Atlantic City, N.J. For more information about Parker McCay, visit www.parkermccay.com.

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