California Man Sues Chevron, Seeks Class Action

09/16/96

The Contra Costa Times reported that Paul Strudwick of Saratoga, CA has filed a lawsuit against Chevron Corporation that alleges problems with California's new reformulated gasoline. The suit has been filed on behalf of Strudwick and anyone else who has bought the fuel from Chevron since late 1995. A similar complaint, generally a precursor to a lawsuit, was recently filed against California's Air Resources Board recently, which mandated the cleaner burning gasoline.

The actions were filed separately in San Francisco Superior Court and with the state Board of Control's Government Claims Division and allege that the new gasoline causes erosion in fuel systems, leading to possible fires. The actions further allege that Chevron and the air resources board knew about the problems and risks with the reformulated gasoline, but failed to warn consumers.

The actions name Strudwick as plaintiff; he makes the claim individually and on "behalf of all those similarly situated." The decision on whether to grant the suit class-action status lies with a judge.

Both Chevron and California officials deny allegations. Chevron spokesman Jim Hendon said, "We don't see any basis to the claims of the suit."

The reformulated gasoline is part of California's effort to improve air quality, and has been designed to reduce tail pipe emissions by 15 percent. The new gasoline was formally introduced June 1, although many gasoline retailers, like Chevron, began selling it in December 1995.

California and industry officials call the new gas program a success, although consumers have complained about the new gas' higher price and its effects on mileage performance. Some consumers also maintain that the new fuel can erode fuel systems and cause vehicle fires. State officials claim there is no evidence of erosion problems.

Strudwick's attorney, Kevin McInerney of Reno, said his client "expects" the presence of MTBE, an oxygenating additive, in the reformulated gasoline will cause his fuel system to fail. MTBE has been added to the reformulated gasoline to help it burn more completely.

State officials say that MTBE has been used in gasoline since 1979, and that the amount of MTBE used in the new gas (11 percent of content) is the same amount found in the oxygenated gasoline retailers have sold during California winters over the past four years. Additionally, officials indicate that reformulated gas with the same MTBE content was introduced in Southern California by federal mandate in early 1995.

Allan Hirsch, spokesman for the air resources board, said, "We have seen no reliable statistical evidence since the gasoline's introduction of any performance problem."

Chevron was the only company named in Strudwick's suit, although all companies in California are sell it. Chevron is the only oil company that warns consumers that the new gas may cause problems for older or high-mileage vehicles. The company posts the warnings on its fuel pumps.

The lawsuit calls for general and punitive damages and requests an injunction to keep Chevron from selling the fuel.

Paul Dever -- The Auto Channel