Too Little, Too Late: Judge Denies Environmental Groups’ Motion to Intervene in Chris Christie’s Exxon Mobil Settlement
A New Jersey state judge ruled on Monday that eight environmental groups and a New Jersey state senator cannot intervene to challenge the $225 million settlement with Exxon Mobil proposed by the New Jersey Department of Environmental Protection (NJDEP) to end litigation lasting more than a decade and originally alleging more than $8 billion in natural resource damages.
The environmental groups and New Jersey Senator Ray Lesniak (D-Union) sought to urge the court to reject the “sweetheart deal” between Exxon Mobil and Christie’s administration and, if the court approved the settlement, to appeal the approval as a party to the litigation. However, Burlington County Superior Court Judge Michael J. Hogan denied the motions to intervene, ruling that they did not demonstrate the adversity of interest, collusion or nonfeasance necessary to justify their intervention. Instead, the court found that NJDEP adequately represents their interests and that the public comment period provided an adequate forum to voice their objections to the settlement. Judge Hogan also ruled that the motions failed on the timeliness factor, pointing out that the intervenors were aware of the lawsuit since it was filed in 2004 and “have known of their interests in its outcome for eleven years.”
The proposed settlement has been subject to extensive criticism and outcry since NJDEP released the draft consent judgement on April 6, 2015. New Jersey’s environmental statute commonly known as the Spill Act requires a public comment period for at least thirty days for proposed settlements under the statute. Given the controversy and overwhelming public attention, NJDEP doubled the public comment period and collected comments for sixty days. NJDEP received approximately 16,000 public comments – most in opposition to the settlement – by the time the comment period ended on June 5, 2015. The court may also consider the comments in determining if the settlement is fair, reasonable and in the public interest.
Keep in mind that the court has not yet passed judgement on the fairness or reasonableness of the proposed settlement – the hearing for that decision is currently scheduled for Tuesday, July 21, 2015. That is, unless, the intervenors file an appeal of Judge Hogan’s decision on their motions to intervene in the next few days and the hearing is delayed pending that appeal.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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