The trial to decide on whether or not Transocean (NYSE:RIG) will be allowed to limit its liability in relationship to the BP (NYSE:BP) oil spill could start in September 2011.
Transocean asserts that under maritime law its financial liability in the case should be capped at $26.7 million. The parameters of the law are exposure is limited to the value of the cargo of the ship and the ship's value itself.
There are other cases as well which will be ultimately be considered test cases, with eight possible suits being designated as such in relationship to the maritime law mentioned above, the Oil Pollution Act, and a wrongful death claim.
Which cases will be designated at trial cases will be decided by plaintiffs' lawyers.
Showing posts with label Limitation of Liability Act. Show all posts
Showing posts with label Limitation of Liability Act. Show all posts
Thursday, September 16, 2010
Friday, June 11, 2010
Transocean (NYSE:RIG): Lawsuit Settlement, We're Not Paying
To add insult to injury, Transocean (NYSE:RIG) is saying they're not paying any lawsuit settlement. Victims and their families are suing Transocean and BP. There were a total of 11 deaths due to the explosion of the Deepwater Horizon rig on April 20th. As well as another 17 people injured.
Transocean is the company that owns the drilling rig. The company has invoked an American 19th century law that will limit their financial liability to only $26.76 million. This amount totals only a small amount of what would actually be requested. Just three weeks after the massive explosion, Transocean petitioned a U.S. federal court for protection under the Limitation of Liability Act of 1851.
Martin Davis, director and professor of law at the Tulane University Maritime Law Center said, "it may work, they've got a chance." The Deepwater Horizon rig is technically considered a mobile offshore drilling unit, meaning it is classified as a seagoing vessel the same as a passenger ship or freighter, according to maritime law.
Transocean is the company that owns the drilling rig. The company has invoked an American 19th century law that will limit their financial liability to only $26.76 million. This amount totals only a small amount of what would actually be requested. Just three weeks after the massive explosion, Transocean petitioned a U.S. federal court for protection under the Limitation of Liability Act of 1851.
Martin Davis, director and professor of law at the Tulane University Maritime Law Center said, "it may work, they've got a chance." The Deepwater Horizon rig is technically considered a mobile offshore drilling unit, meaning it is classified as a seagoing vessel the same as a passenger ship or freighter, according to maritime law.
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