Oil spill in the Gulf of Mexico created unprecedented environmental and economic damages, resulting in massive losses in revenues for local governments relying on beach traffic, tourism

MONTGOMERY, ALA. (September 9, 2010)  – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. has filed a lawsuit on behalf of several cities for losses in revenue as a result of the oil disaster in the Gulf of Mexico. The suit is the first to be filed by cities that are not on the Gulf Coast but have suffered revenue losses. The suit is filed in the U.S. District Court of the Middle District of Alabama on behalf of Greenville, Evergreen, Georgiana, and McKenzie, Alabama, as they have had to weather a significant decrease in tourist traffic to the Gulf coast in their highest season.  The suit alleges negligence, and damages under the Oil Pollution Act. Defendants named in the suit are BP, Transocean, Anadarko, Mitsui, Moex Offshore 2007, Halliburton, Cameron International, and M-I.  Attorneys representing the Plaintiffs are Jere L. Beasley and  Rhon Jones of Beasley Allen, as well as Richard Hartley of Hartley & Hickman.

The oil drilling platform, the Deepwater Horizon, exploded in the Gulf of Mexico on April 20 and sank two days later. The wreckage poured thousands of gallons of oil into the Gulf waters for approximately 87 days. For those who rely on tourism for their livelihoods, the disaster couldn’t have come at a worse time. Summer is normally prime tourist season for communities dotting the Gulf. While oil damage closed some beaches and recreational fishing operations, fears about the oil spill also kept vacationers away. As a consequence, businesses along the major north-south corridors are experiencing significant lost revenues normally generated from the travelers heading toward the Gulf coast, resulting in lost tax revenue to the local governments and a need for those same governments to provide services to suffering residents.

“Communities on travel routes to the Gulf Coast were impacted by loss of tax revenue they count on to survive by the very reckless conduct of each of these defendants,” Rhon Jones, head of Beasley Allen’s Environmental Law section, said.  “The shame of it all is that had these companies acted properly this disaster would not have happened .”


Read the complaint.

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