Deepwater Horizon some observations o Professor Erik Rsg
Deepwater Horizon - some observations o. Professor Erik Røsæg o. Scandinavian Institute of Maritime Law oerik. rosag@jus. uio. no ofolk. uio. no/erikro
The parties o BP – operator o Transocean – owner of rig o Halliburton – cement contractor o Cameron - owner of blow-out preventer 2
Criminal and administrative penalties o Negligent pollution is an offence o Clean Water Act 33 USC 26 III o Which negligence standard? 3
Civil liability and limitation o OPA= 33 USC 40 I; CWA = 33 USC 26 III o Strict statutory liability to USCG o Torts o Strict liability o Trans. Ocean not responsible for spills directly from the well (after average)? o Feinberg fund o o Secure claims More liberal than courts Requires settlement with BP USD 20 bn; 3 bn actually paid in o Oil Spill Liability Trust Fund (26 USC I 98 A) 4
Limitation o Separate limits for USCG o Transocean has filed for limitation for death/personal injuries (46 USC App 8; Jones Act = 46 USC III § 30104) o No other filings for limitation at this stage o Breaking of limits – violated federal safety regulations o Personal injuries: Value of vessel after incident + pending freight o USD 75 mill o USD 26. 8 mill paid to Transocean from hull insurers o Adverse publicity o OPA limits (33 USC 40 I § 2704) o Reform proposals 5
The problem of frivolous claims o “Spillionaires” o “Vessels of opportunity” o Ice to vessel engaged in skimming 6
Claims – principles o Hadley v Baxendale – remoteness (156 E. R. 145; (1854) 9 Ex. 341) o Robins Drydock & Repair Co. v. Flint – proprietary interest (275 U. S. 303) o OPA loss of profits recoverable if “due to …” (33 USC 40 I § 2702) o Jones Act –potential dependents (wife of deceased 9 months pregnant) o Mitigation o Ignorance of law – TV ads, billboards etc o Retroactive law reforms? 7
Claims – natural resources o Natural resources o Restoring (how to clean the wetlands? ) o Loss of use o Alternative amenities o Long term ecological effects (cp. herring not returned to Prince Williams Sound) o Possible oil at sea bottom 8
Claims – public bodies o Loss of taxes o Use of public servants (firemen etc) 9
Claims - other o Moratorium of drilling – loss of other oil companies o Loss of ‘way of life’ o Indochinese refugees o Decrease in bikini waxing o Strip clubs in the town of Hummer 10
Direct action against insurers in Louisiana o BP insurance strategy (1993) 6 JACF 3, 4 -15 o Accident in Louisiana o International waters o EEZ irrelevant o Policy entered into or delivered in Louisiana (La RS 22: 1269) 11
Recourse o Knock for knock o Willful misconduct or gross negligence 12
Removal organization o Preident – USCG – on scene coorinator (local czar) o Jones Act – cabotage exception (46 USC V D § 55113) o Role of BP 13
Procedure o Multi-district litigation panel o Consolidated in New Orleans 14
- Slides: 14