Kyle Cannon, et al. v. BP Products North America, Inc., United States District Court for the Southern District of Texas, Galveston Division (2013)
This case involved a proposed class of residential and commercial properties spanning three zip codes in Texas City and La Marque, Galveston County, Texas. Property owners claimed diminution in value due to airborne contamination from a nearby refinery formerly owned by BP Products North America Inc.
“The Court agrees with BP’s expert Dr. Thomas Jackson: “If [opposing expert] found a delta, or price difference, you have to be able to say it’s due to this characteristic that differs between the two areas.” Memorandum and Order
“As Dr. Jackson explains, regression models are designed to compare a subject group before and after a relevant date with a control group before and after the same date in order to measure the effect of some event or circumstance in the subject group.” Memorandum and Order
“….. BP’s expert Dr. Jackson states that it is “not a generally accepted valuation method within the appraisal field”…. Jackson presents a number of problems with contingent valuation: it is not as reliable as the existing transactional data; hypothetical bias may exist because the respondents do not have to bear the consequences of their decisions; it does not incorporate many factors that go into a home purchase; and respondents may be biased or not understand the scenarios.” Memorandum and Order
“For the reasons discussed above, the Court rules that: BP’s Motion to Exclude Proposed Expert Testimony of [opposing expert] is GRANTED; Plaintiffs’ Motion for Class Certification is DENIED.” Memorandum and Order