Gov. Ben Cayetano challenged a statement by Chevron Corp. yesterday that the state's $20 million settlement with Hawaii's major oil companies shows the lawsuit was unfounded. Cayetano defends suit
against oil companiesBy Tim Ruel
truel@starbulletin.comThe state had been seeking $2 billion from the companies, alleging that the firms conspired to raise Hawaii's high price of gasoline.
"The settlement reinforces the fact that this case was baseless and our pricing has been lawful and fair," Chevron said.
But Cayetano said, "We disagree, but faced with the fact that the judge wanted to throw the case out, we had to make a choice. I feel if we had been able to present our case, we would have made a good case."
The oil companies and the state reached a tentative settlement to the three-year case Jan. 16. At the time, senior U.S. District Judge Samuel King was about to rule on the oil companies' motions for summary judgment.
The state and the oil companies filed a joint motion yesterday for approval of the settlement, which contains the first public details of the agreement. King must officially approve the deal, and a hearing has not yet been scheduled.
In a document filed yesterday in support of the settlement, the state noted that recent developments in antitrust law have weakened its case since it was filed October 1998. Several court opinions have been issued that are adverse to suits based on circumstantial evidence, the state said.
Defendants Chevron, Shell Oil Co. and Texaco Inc. will each pay the state $5 million, while Unocal Corp. will pay $3.3 million and Tosco Corp. will pay $1.7 million. In doing so, the companies deny any wrongdoing.
Because the state sued on behalf of Hawaii's consumers, any resident can opt to be excluded from the settlement or to object to the settlement. Opt-outs and objections must be postmarked within 35 days of preliminary court approval of the deal.
Of the total $20 million, $1 million will go to the litigation expenses of the state, and $4.2 million will go to the attorneys who fought the state's case, the Hawaii law firm Galiher DeRobertis Nakamura Ono Takitani and the California law firm Hosie, Frost, Large & MacArthur. The remaining $14.8 million will go to the state highway fund.
In 2000, Tesoro Petroleum Corp. and BHP Hawaii Inc. settled the case by paying the state a total of $15 million.
The main benefit of the case has been the amount of information that has been made public about how the oil companies do business in Hawaii, the state said. Last week, the court unsealed dozens of documents related to the companies' motions for summary judgment.
State of Hawaii
