Sunoco 2009 Annual Report Download - page 37

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Oyster Bay Water District v. Amerada Hess Corporation, et al. (including Sunoco) (Supreme Court of the
State of New York, Nassau County), was filed in June 2009.
The following previously reported MTBE case was dismissed and not refiled in state court:
Albertson Water District v. Sunoco, et al. (U.S. District Court, Southern District of New York), was filed in
March 2007.
For the MTBE cases for which no damages have been accrued, there has been insufficient information
developed about the plaintiffs’ legal theories or the facts that would be relevant to an analysis of the ultimate
liability to Sunoco. However, Sunoco does not believe that they will have a material adverse effect on its
consolidated financial position.
Other Litigation
In November 2006, a jury entered a verdict in an action brought by the State of New York (State of New
York v. LVF Realty, et al.) seeking to recover approximately $57 thousand in investigation costs incurred by the
state at a service station located in Inwood, NY, plus interest and penalties. Sunoco owned the property from the
1940s until 1985 and supplied gasoline to the station until 2003. Sunoco denied that it was responsible for the
contamination. The jury found Sunoco responsible for 80 percent of the state’s costs plus interest and assessed a
penalty against Sunoco of $6 million. In June 2007, the trial court judge in this case denied Sunoco’s post-trial
motion requesting that the $6 million penalty verdict be set aside. Sunoco has filed an appeal of this matter and is
engaged in settlement discussions with the State of New York. (See also the Company’s Annual Reports on
Form 10-K for the fiscal years ended December 31, 2008 and 2007.)
Many other legal and administrative proceedings are pending or may be brought against Sunoco arising out
of its current and past operations, including matters related to commercial and tax disputes, product liability,
antitrust, employment claims, leaks from pipelines and underground storage tanks, natural resource damage
claims, premises-liability claims, allegations of exposures of third parties to toxic substances (such as benzene or
asbestos) and general environmental claims. Although the ultimate outcome of these proceedings cannot be
ascertained at this time, it is reasonably possible that some of them could be resolved unfavorably to Sunoco.
Management of Sunoco believes that any liabilities that may arise from such matters would not be material in
relation to Sunoco’s business or consolidated financial position at December 31, 2009.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
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