Confused lawyers seek piece of oil companies 'ethanol profits'

Kabateck Brown Kellner, a plaintiffs-only law firm that has made a name pursuing consumer class action suits is targeting "oil companies" for its next payday. It's filed a baffling  lawsuit against a disparate array of corporations such as ExxonMobil, Chevron, BP, Shell, Valero, and ConocoPhillips, cha rging that ethanol causes serious damage to marine engines and fuel tanks.
        Why oil companies? Deep pockets, apparently. A press release put out by the law firm itself points out "ExxonMobil last year recorded the largest-ever profits in U.S. history."
        Sure, but ExxonMobil (not to mention Chevron, Shell, ConocoPhillips and BP) are integrated oil companies whose 2007 profits mostly came from upstream operations. Meanwhile, refiners like Valero and Tesoro did not show increased earnings last year. In fact, crude oil prices being what they are, Tesoro lost $40 million in the fourth quarter.
        Kabateck, which in the past few months also has filed class actions against Apple (false advertising) and Network Solutions (sitting on domain names), is now ranting dementedly in a kind of guy-on-a-street-corner way about how the oil industry really works.
        "The oil companies know this fuel is corrosive, but they are keeping consumers in the dark to pump up their profits," the suit says.
        Speaking of being in the dark, Kabateck seems also to have missed the opportunity to do a Lexis look-up on the motivations surrounding ethanol blending. The lawyers' crackerjack research team does not even correctly identify the parties who really are profiting from the Renewable Fuels Standard.
        Have you or your loved ones been involved in filing a frivolous lawsuit? Pick up the phone and call Kabateck, they're on your side.

Comments

[Peter]

To the previous commenter:

There is one major factor you are overlooking and that is that the state of California has effectively mandated ethanol blending in areas where reformulated gasoline is required by federal law because the state has banned MTBE.

Also, while I am not an expect on California law, it seems to me that if none of the gasoline retailers label that their fuel contains ethanol, then the state must not require them to do so. Thus, I would suggest you write your local state legislator about introducing a bill requiring service stations to label that their fuel is blended with ethanol.

Lastly, what kind of boat has a $30,000 engine? Do you work for Royal Caribbean?

[Anonymous]

How much did the oil companies pay you?

You are not the one paying $30,000 out of pocket because the oil companies never told you that you were purchasing ethanol fuel for your boat, and that it will cause damage.

Not all gas stations in California sell ethanol blended fuel.

The oil companies in California do not label their fuel. Thus, you do not know if the fuel you are purchasing is blended with ethanol, and you otherwise cannot avoid the consequences of ethanol, even if you know that it will eat your gas tank.

I went to the websites for the oil companies and did a search for the word “ethanol.” Not one article or section came up that warned anyone that ethanol was a solvent and would be harmful to boats, snow mobiles, lawnmowers, or anything else that has a fiberglass or plastic gas tank. Nor is there any disclosure at the pump.

What is more, the oil companies do not tell you that their fuel expires if left to sit, or that it expires faster near water.

The oil companies will get no sympathy here.