Chowdhury v Shell Oil Company

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Shell Under Fire for Selling Tainted Gasoline in Florida

Case ID: 3474
Amount At Issue: $3,700,000.00
Category: Automotive
 
Last Update: 03/15/2006
Country:
 

A class action has been filed against Shell Oil Company, Motiva Enterprises, LLC, and several other affiliated companies on behalf of persons who purchased sulfur-tainted gasoline from Florida gas stations that were supplied by Shell Oil or Motiva during May 2004. The action seeks an order to force the companies to inspect affected vehicles for up to a year and cover the cost of any repairs up front.

Just before the heavy-driving Memorial Day weekend, Shell Oil Company stopped the sale of gasoline at more than 500 of its stations in the New Orleans area, Miami, and other parts of Florida because of fuel containing excessive levels of sulfur. A small number of stations with other brand names, Sunoco and Hess among them, also may have received the bad gas because Shell and Motiva have exchange agreements with other suppliers. No gasoline stations are named as defendants in the action.

The gasoline has already damaged the fuel gauges of thousands of automobiles, and experts fear that unknown future damages to engine components may result from the use of the tainted fuel. Shell officials have said the sulfur-tainted fuel isn't known to cause engine damage, but it can corrode the silver sensors in fuel gauges. The corrosion causes vehicle fuel gauges to become stuck-- besides getting the false notion that their vehicles have more fuel than they do, drivers who use the gas may have to replace their fuel gauges -- a repair that can easily run from $400 to $600.

As of June 1, 2004, Shell said it received about 15,000 calls from consumers in Florida, Mississippi and Louisiana about the tainted gas. About 9,000 claims have been filed to fix faulty gas gauges in the three states. They have admitted that problem fuel has turned up in shipments to Miami, Tampa, Sarasota, and Fort Lauderdale. The stations in Tampa reopened for business Friday, May 28.

Shell officials have suggested that customers experiencing unusual gas gauge readings monitor their mileage or keep fuel tanks filled in order to prevent run-outs. Persons experiencing problems may contact Shell at 1-877-825-2467. Apparently the company is trying to forestall legal liability by mailing out checks to cover fuel gauge repairs-- banking on their assertion that the sulfur will have no future negative effect on autos.

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