Transocean, owner of the Deepwater Horizon rig that exploded in the Gulf killing 11 and causing a catastrophic and growing oil spill, has true to form gone to court to try and limit its liability. Transocean is the world’s largest offshore drilling company posting a profit of $3 billion just last year, but felt it necessary to file a request in federal court in Houston to try and limit its liability in this economic and ecological disaster to around $27 million.
Lawyers for Transocean filed the request to take advantage of the Limitation of Liability Act, a maritime law that allows vessel owners to limit their liability to the value of the vessel and its freight. Transocean said through a spokesman that the action was taken on instruction from its insurers. Quietly, Transocean has already been paid over $400 million by its insurers for the loss of the Deepwater Horizon rig.
So now we have a hugely profitable drilling company who is now compounding the misery of the victims of the explosion for the sole and selfish reason to protect the company’s owners and investors. Despite the very public pronouncements by the companies involved that they will pay for the damages the explosion has caused, their actions show a more self-centered approach. Reports have already surfaced of survivors being forced to sign affidavits upon reaching shore that they were not injured and knew nothing about the cause of the explosion, affected fishermen being offered one time cash payments which included a hidden waiver of liability, and now this run to the courthouse for liability protection.
Somehow I doubt the families of the survivors of the explosion get a warm, fuzzy feeling about the ultimate outcome of their claims when they see the companies begin to take actions to protect their bottom lines instead of adequately and quickly compensating the victims.
Richard J. Arsenault, 2011
