Litigation Risk: BP and Partners Maimed as Gross Negligence Claimed?

(Westlaw Business) What if a $20 billion claim were the least of a defendant’s worries? As expected, the U.S. government has filed suit against BP and eight other defendants for their liability for last spring’s tragic Macondo blowout that claimed 11 lives and caused perhaps incalculable environmental and commercial damage.

Styled United States v. BP Exploration & Production, Inc., et al.,1 the government filed the case in the United States District Court for the Eastern District of Louisiana, the multi-district litigation (MDL) forum selected to hear all tort claims resulting from the blowout. (See Westlaw Business Currents Energy Industry: Courtroom Drama, No Mere Legal Arcana.) In addition to BP, the suit names as defendants: Anadarko Exploration & Production LP and Anadarko Petroleum Corporation (collectively “Anadarko”); MOEX Offshore 2007 LLC (MOEX); Triton Asset Leasing GMBH (Triton); Transocean Holdings LLC, Transocean Offshore Deepwater Drilling, Inc., and Transocean Deepwater, Inc. (collectively “Transocean”); and QBE Underwriting Ltd., Lloyd’s Syndicate 1036 (Lloyd’s).

Although reserving its right to amend the complaint, perhaps the most remarkable element of the government’s pleading is its straightforwardness: The complaint seeks civil penalties under §311b of the Clean Water Act (CWA), and a declaratory judgment that all defendants are liable under the Oil Pollution Act (OPA).

In a nutshell, the government has claimed that each defendant is “subject to a judicially assessed civil penalty of up to $1,100 per barrel of oil that has been discharged or up to $4,300 per barrel of oil that has been discharged, to the extent that the discharge of oil was the result of gross negligence or willful misconduct by such Defendant.” Based on an estimated five million barrels of oil discharged, the civil fines would be roughly $5.5 to $21.5 billion.

via Litigation Risk: BP and Partners Maimed as Gross Negligence Claimed?.

Hello, RICO! The Latest Headache to Hit BP – Law Blog – WSJ

Besides a raft of personal injury suits and the economic claims against BP, a new genre of suits is now emerging: the civil racketeering suit.

Last week Daniel Becnel, Richard Arsenault and an array of other attorneys filed in the Western District of Louisiana a federal RICO suit against BP and Transocean. Click here for the complaint.

A RICO suit filed on Monday is far more narrow in focus, targeting BP’s claims process. The suit filed in the Southern District of Alabama has accused three entities — BP, a catastrophe contractor that apparently is helping BP administer claims and a property management company — of fraudulent practices in helping claimants seek recourse under funds set aside via the Oil Pollution Act.

via Hello, RICO! The Latest Headache to Hit BP – Law Blog – WSJ.

BP, Transocean Lawsuits Surge as Oil Spill Spreads in Gulf – BusinessWeek

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BP Plc and Transocean Ltd. face at least 36 lawsuits, including group cases with potentially thousands of plaintiffs, over environmental damage and personal injuries caused by the oil spill in the Gulf of Mexico.

At least 31 proposed class-action suits have been filed in courthouses from Texas to Florida. Commercial fishermen, shrimpers, charter-boat operators and beachfront-property owners asked to represent anyone whose livelihood depends on coastal waters imperiled by the drifting oil. At least 24 cases were filed yesterday.

BP has the primary liability for damage caused by the spill, said Keith Hall, an attorney in New Orleans, who isn’t involved in the litigation. He cited a U.S. law passed after the Exxon Valdez oil spill at Alaska in 1989.

“Under the Oil Pollution Act, the fact that it was BP’s oil is enough,” said Hall, of Stone Pigman Walther Wittmann LLC. Plaintiffs “don’t have to show they were negligent or grossly negligent,” he said.

Transocean’s spokesman Guy Cantwell and BP’s Daren Beaudo didn’t respond to requests for comment on the rapid rise in lawsuits. Both men said previously it was against company policy to comment on pending litigation.

Lawsuits also name Cameron International Corp., which provided blowout-prevention equipment, and Halliburton Energy Services Inc., which was involved in cementing the well.

via BP, Transocean Lawsuits Surge as Oil Spill Spreads in Gulf – BusinessWeek.