Update: Scharfstein v. BP West Coast Products (Oregon ARCO gas debit card fees)

There have been two important developments in our win over BP. The case involves illegal debit card charges for gas purchases at Oregon ARCO stations. Details on the history are here with a few additional posts here.

A bit of a summary first. Our claim process was a smashing success. Over 1.7 million people, roughly 83 percent of the class, made claims. That’s an awesome result in any class action.

So two things happened this month. First, the Oregon Legislature passed and Gov. Kate Brown signed HB 2700, a bill that changes how unclaimed money is handled in class actions. BP opposed the bill. Here is an awesome insider’s view of some of the many gyrations and personalities that BP hired to kill the bill. (Love the comments, especially!)

Anyway, the bill appears to apply to this case. BP disputes that, of course. So what does it mean? Well, it means that Judge LaBarre must sort out whether it applies and–if it does–how to go forward to finish what needs to be done before entry of judgment. As a lawyer who practices in these areas, I am fairly certain that the bill applies to our case. So that’s the easy part. Then comes the “Now what?” portion, and my guess is that that will slow entry of judgment.

The good news is that BP must pay 100 percent of the value of the verdict. They don’t get to keep the money. Better yet, the money goes to legal aid and other worthy related purposes to benefit consumers. Best of all, we are talking about roughly $60 million dollars.

The only downside is that it slows down our case somewhat, and it gives BP a big issue to argue on appeal. We don’t really get to choose here, so we’ll take the bitter with the sweet and move on toward wrapping everything up in the trial court. Not sure when that will be by the way. But after we get it wrapped up, BP has indicated that it will appeal. As we’ve said many times over, the appeal could take years. And of course, there is always a risk that BP will overturn the verdict on appeal.

But let’s be very clear about something: They want more fight? We got more fight. David is not intimidated by Goliath.

I mentioned two things happened. The second happened earlier this week. Judge LaBarre ruled on the fee petition. As we explained in the class notice, we were going to ask the court for no more than 20 percent, or $40 per class member.  Judge LaBarre granted part but not all of our requested fees.

Each class member’s share of fees is $35.15 or 17.57 percent. (If you want a comparison to an individual case, we usually charge individual consumers 33-40 percent, depending on whether the case settles before trial.) So when and if final payday comes around, each class member should receive $164.85, plus interest, if the case goes all way to the bitter end.

So that’s the news from the trenches. Thanks for your continuing patience. Keep in mind that we do updates on our Facebook page, so if you’re a user, you can find news there about this case and other pending major cases against KBR and Career Education Corp. If you’re a Twitter user, I am @DavidSug, though that’s not really a work account. Note that I do not offer legal advice in response to comments on our blog or on Facebook or Twitter. It’s not that I’m unwilling to answer questions. It’s more that we are required ot protect your confidentiality. And we take that seriously. So feel free to call (503.228.6474) or email me davidATdavidsugerman.com if you have questions.

-David

55 thoughts on “Update: Scharfstein v. BP West Coast Products (Oregon ARCO gas debit card fees)

  1. Hi Tami- Thanks for your kind words. Not sure if you were thinking that I was involved in the asbestos issue you mentioned. I wasn’t and don’t know anything about it.

  2. That’s great news! Thanks for your kind words. Also, there will be another check for you and everyone else next year at this time. So stay tuned for that.

    -David

  3. Thanks. We’ve heard from a lot of people who live on fixed incomes and from those at or near the waterline. It’s an important message for us to hear because it’s easy to lose sight of what matters.

    Keep in mind that there will be another payment next time at this year. So if you move, please call us so that we can update your address.

    Thanks so much for your kind words and for reminding us to stay focused.

    -David

Leave a Reply

Your email address will not be published. Required fields are marked *