Transocean planning to ask courts to Limit its Oil Spill Liability

[Robbien]

Transocean is reportedly set to ask a court to limit its liability in the Deepwater Horizon disaster to just $27 million. Transocean is the owner of the rig, which last month sunk in the Gulf of Mexico, unleashing a massive oil spill. Over the years, it has been more adept at financial engineering than at safety engineering.

Given the billions of dollars in damages in clean up costs that will pile up, it is fair to calmly ask, are they kidding?

No, they appear to be for real. The Wall Street Journal, citing court documents and an unnamed source, says the company will appeal to an 1851 maritime law that predated the existence of modern insurance. In the event of a sinking, the law limited U.S. shipping companies' liability to the post-disaster cost of the vessel and its cargo. The current value of the Deepwater Horizon is $27 million, the company will argue. The pre-accident value was $650 million. The law was established to give U.S. shipping companies parity with foreign shipping companies, which were largely exempt from shipping-related damages.

Well, that sounds perfectly reasonable.

There may, however, be another traditional maritime sanction that could apply here. It's called walking the plank.

http://www.portfolio.com/views/blogs/daily-brief/2010/05/13/transocean-wants-to-limit-oil-spill-liability


With the way our courts are today, our pro-corporate judicial system will probably side with poor little Transocean's plight.

[jschurchin]

1. Yeah, Limit it to about

a trillion dollars. That would be fair. Kick it up boy's. Your incompetence caused this.

[BootinUp]

2. Shipping.vessel.my.dick. nt

[Angry Dragon]

3. Since when is a drilling rig a vessel??

Hey they screwed up and need to pay for their mistakes......