Exxon Loses Bid to Avoid Paying Legal Costs Over N.Y. Pollution

Exxon Mobil Corp. might have to pay indemnity fees after failing to convince a New York federal judge to dismiss a claim related to alleged pollution in Onondaga Lake near Syracuse.

While the Northern District of New York sided with Exxon and its subsidiary ExxonMobil Oil Corp. and dismissed allegations they broke a contract with Pyramid Co. of Onondaga and others, the court did allow Pyramid to pursue indemnification for costs incurred fighting environmental contamination claims at an Exxon Terminal.

Both Pyramid and Exxon were defendants against petroleum distributor Buckeye Partners LP and related companies, who themselves sought indemnity fees after being sued by Honeywell International Inc. in 2018 over the alleged release of hazardous materials into Onondaga Lake and its surrounding tributaries.

After Honeywell sued Buckeye and Buckeye sued both Pyramid and Exxon, Pyramid filed counterclaims against Buckeye and crossclaims against Exxon in the US District Court for the Northern District of New York.

“Although Plaintiff Honeywell may have dismissed its claims against Exxon, based on these allegations in Exxon’s counterclaim, the Court finds that there are still questions of liability and costs with respect to Exxon’s practices at the Exxon Terminal site,” Judge Frederick J. Scullin Jr. wrote in Monday’s opinion.

The Wladis Law Firm PC represent Pyramid, YAD Associates, and individual Bruce Kenan. Karen Lee Prena PC, Duane Morris LLP, and McCusker Anselmi Rosen & Carvelli PC represent ExxonMobil.

The case is Yad Assocs. v. Exxon Mobil Oil Corp., 2023 BL 99684, N.D.N.Y., No. 5:18-CV-646 (FJS/ML), 3/27/23.