BP and Transocean Push to Limit Liability for Gulf Oil Spill Disaster, Downplay Impact

Blizzard, McCarthy & Nabers Demands Accountability

HOUSTON, May 20 /PRNewswire-USNewswire/ -- On Tuesday, May 18, BP CEO Tony Hayward told the Associated Foreign Press "the overall environmental impact [of the Deepwater Horizon oil spill] will be very, very modest."  Meanwhile, over 94,000 barrels of oil have already spilled into the Gulf of Mexico, with an additional 5,000 more leaking out each day (unofficial estimates put it as high as 70,000).  Another 400,000 gallons of chemical dispersant have also been released into our seas and almost 46,000 square miles of water have been closed off to fishing.

While BP tries to play down the impact of the spill, environmentalists and government officials are increasingly concerned about the remnants reaching the Florida Keys and the east coast of the United States.  What's more, recent reports suggest that BP employees and contractors are working to prevent the media from reporting on the magnitude of this disaster; in one case turning a CBS news crew away from a Louisiana beach on threat of arrest.

And as lawsuits continue to mount against the oil giant, as well as drilling contractor Transocean, both companies have begun full-scale efforts to limit their liability for the explosion and subsequent oil spill.  Under federal law, compensation must be provided to local and state governments, businesses and residents who have been affected by this disaster, but these damages are capped at only $75 million.  

Additionally, Transocean, which actually owned the Deepwater Horizon rig, has claimed that its liability is limited to just $27 million under the Limitation of Liability Act, passed 160 years ago.  Under the law, a vessel owner can limit its liability to the value of the vessel and its freight.  But this law was passed well before insurance companies began offering coverage to ocean vessels, and the drilling giant has already received a payout of $400 million from its insurance provider.  By allowing this claim, Transocean could actually end up profiting from the spill.

"Transocean and BP's attempts to limit their liability for the devastation caused by this spill demonstrates that neither company is ready or willing to take responsibility for this catastrophe," said Ed Blizzard, founding partner of Blizzard, McCarthy and Nabers.  "Corporations like these, that operate with an eye on their bottom line, as opposed to the safety of their operations, must be held accountable and justice must be provided to those whose lives and livelihoods have been left in shambles by their negligent behavior."

Blizzard, McCarthy and Nabers, a Houston law firm that specializes in Mass Torts and has played an instrumental role in some of the nation's largest mass tort cases, recently launched a website at www.blizzardlaw.com/BPlawsuits.  The site is meant to provide those in Gulf Coast region the latest information about the spill as well as legal options for those whose lives have been affected.  

Blizzard, McCarthy & Nabers, LLP, one of the nation's leading mass tort litigation firms, represents thousands of clients harmed by negligent corporations and has taken on some of the world's largest conglomerates, including Bristol-Myers, GlaxoSmithKline, Merck, Pfizer and Dow Chemical.

SOURCE Blizzard, McCarthy & Nabers, LLP