Frank Adkins Robert Kean Federico Montinez John D. Johnson Jerry Kahklen, Claimants-Appellants v. Trans-Alaska Pipeline Liability Fund

In 1989, the EXXON VALDEZ ran aground, spilling millions of gallons of oil into Prince William Sound. On this appeal, Alaska businesses and property owners claiming damage from the oil spill challenge the denial of their claims by the Trans-Alaska Pipeline Liability Fund (the “Fund”).

The Fund was established in 1973 by the Trans-Alaska Pipeline Authorization Act (the “Act”). Pub.L. No. 93-153, 87 Stat. 576 (1973) (codified at 43 U.S.C. §§ 1651-54 ). Section 1653(c) of the Act creates strict liability for damages caused by marine spills of Alaska crude oil transported through the Trans-Alaska pipeline and loaded onto vessels at the pipeline terminal. 43 U.S.C. § 1653 (c). To provide moneys for the payment of compensation out of the Fund, the Act imposes a tax on oil moving through the pipeline. See In re Glacier Bay, 944 F.2d 577, 580-81 (9th Cir.1991).

The four claims that are the subject of this appeal are said to be representative of many others whose denial by the Fund was affirmed by the district court in the order appealed from. The claims are as follows:

PROCEDURAL BACKGROUND

In September 1990, early in the massive litigation that resulted from the oil spill, the…