Exxon Ignored Pipeline Defects Before Mont. Spill: Suit

Law360, New York (October 5, 2011, 1:31 PM EDT) -- Montana landowners sued ExxonMobil Oil Corp. on Tuesday over a ruptured pipeline that leaked 50,000 gallons of oil into the Yellowstone River, alleging that the oil giant ignored signs that its pipe might not withstand severe floods.

A group of eight landowners, including several businesses, is seeking punitive damages, claiming that Exxon and two of its supervisors also named as defendants knew that the Silvertip Pipeline near Laurel, Mont., was a toxic “time bomb” but continued pumping oil anyway to make money.

“Despite notice and warnings,...
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