Deepwater Horizon litigation

Litigation due to the loss of the Deepwater Horizon and resulting oil spill commenced shortly after the initial loss of the rig in April 2010.

A large number of claims and class actions have already been filed, although many claims are expected to be met administratively from the fund set up for that purpose under the Oil Pollution Act of 1990, which allows claims to be filed administratively and contemplates their settlement within 90 days.

Litigation history

By May 27 2010, 5 weeks after the initial incident, Transocean reported to the United States Congress that:

"Of the approximately 120 lawsuits, more than 80 filed against Transocean are class actions in which individuals and businesses seek payment for financial losses covered by the Oil Spill Pollution Act. Generally, the claimants in these lawsuits are fishermen, hotel operators, landowners, rental companies, restaurants and seafood processors, who claim a current or potential future loss of business in the aftermath of the oil spill. Many of these 80 lawsuits overlap, with lawyers seeking to represent the same classes of people."

At the same time UK media reported that over 130 lawsuits relating to the spill had been filed against one or more of BP, Transocean, Cameron International, and Halliburton Energy Services, although it is considered likely by observers that these will be combined into one court as a multidistrict litigation. Because the spill has been largely lingering offshore, the plaintiffs who can claim damages so far are mostly out-of-work fishermen and tourist resorts that are receiving cancellations. BPreported that 23,000 individual claims had already been filed, of which 9,000 had been settled. BP and Transocean want the cases to be heard in Houston, seen as friendly to the oil business. Plaintiffs have variously requested the case be heard in Louisiana, Mississippi or Florida. Five New Orleans judges have recused themselves from hearing oil spill cases because of stock ownership in companies involved or other conflicts of interest. BP has retained law firm Kirkland & Ellis to defend most of the lawsuits arising from the oil spill.

BP, which largely self-insures through its own Jupiter Insurance Ltd, was also the subject of early litigation from multiple Lloyd's of London underwriting syndicates and other underwriters seeking a declaration that they were not liable to BP under Transocean's US $700 million insurance policy.

Moratorium

Main article: Hornbeck Offshore Services LLC v. Salazar

Hornbeck Offshore Services, joined by several dozen corporations with offshore interests, has filed suit (Hornbeck Offshore Services LLC v. Salazar) in U.S. District Court seeking to enjoin the U.S. Department of the Interior from imposing a ban on deep water drilling.