Sunday, June 13, 2010

New House bill would amend or repeal ancient laws that could let BP, Transocean off the liability hook

Archaic laws protect BP, Transocean and others from full liability in the Great Gulf Oil Spill of 2010. So U.S. Rep. John Conyers (R-Mich.) introduced a bill Friday to amend those laws.

HR 5503 (The SPILL Bill) would amend the 90-year-old Death on the High Seas Act and Jones Act, so that families of the 11 workers killed in the Deepwater Horizon rig explosion could sue for non-pecuniary damages (such as pain and suffering).

Further, the bill would strengthen bankruptcy rules to make it harder for BP to spin off part of its company responsible for the ruptured well and have that piece declare bankruptcy to avoid financial liability. Some are concerned that as costs mount the company might use bankruptcy to avoid payment.

The bill also would repeal a 160-year-old law that limits the liability of vessel owners to the value of the vessel and its cargo. Transocean lawyers had at one point planned to use this to limit the company's liability, but backed away because of objections from the Justice Department.

Finally, the bill would give states affected by the spill the power to pursue legal redress against BP and others responsible in their own courts.

“We should not allow reckless corporations to use 19th century laws to shortchange their victims,” Conyers said in a statement.

The bill is co-sponsored by 11 other representatives, including Charles Melancon (D-La.).

(Source: E&E Daily, InsideLouisianaNews.com)

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