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The Honolulu Advertiser
Posted on: Friday, April 13, 2001



State antitrust suit against oil firms goes to trial Feb. 5

By Frank Cho
Advertiser Staff Writer

A federal magistrate has agreed to postpone the state's $2 billion antitrust trial against several major oil companies until early next year, after some defense attorneys requested more time to prepare their cases.

Federal magistrate Kevin Chang set the new trial date for Feb. 5, according to a court order filed last week.

This is the second time the trial date has been pushed back since the lawsuit was filed in late 1998.

Honolulu attorney Lisa Munger, who is helping represent Chevron in the case, said the delay is unlikely to affect the trial, but will give attorneys on both sides more time to prepare.

The state filed suit against 13 corporations, including Chevron Corp., BHP Hawaii Inc, Shell Oil Co., Texaco Inc., Tesoro Petroleum Corp., Tosco Corp. and Unocal Corp., seeking $500 million in damages.

It later increased that figure to nearly $2 billion.

The lawsuit alleges refineries and wholesalers agreed to keep prices artificially high and, as a result, reaped enormous profits by overcharging Hawai'i gas station dealers and consumers.

All the companies have denied the charge.

In November 1999, BHP Hawaii and Tesoro agreed to pay the state $15 million to settle their role in the antitrust lawsuit over alleged gasoline price fixing, averting their involvement in a trial that could have cost the companies millions of dollars more in legal fees and penalties. They continue to deny any wrongdoing.

A spokesman for Chevron, the leader in Hawai'i's retail gasoline market in terms of market share with roughly 30 percent, said yesterday he did not know about the change in trial date.

Spencer Hosie, the state's San Francisco-based lead attorney on the antitrust case, called the new trial date "irrevocable" and said it was unlikely the trial would be delayed a third time.

The state attorney general's office yesterday declined to comment.

According to Judge Chang's order, depositions should be completed by May 15. The state's final list of witnesses is due Nov. 21, and the oil companies' witness list a month later.

Frank Cho can be reached by phone at 525-8088, or by e-mail at fcho@honoluluadvertiser.com