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US asks judge to reject Transocean liability cap.

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Bloomberg News (6/3, Fisk, Calkins) reports, “The US government asked a federal judge to reject Transocean Ltd.’s bid to use a 159-year-old law to cap its liability at $27 million for environmental claims tied to the Deepwater Horizon oil spill.

The Justice Department announced an investigation of whether any criminal or civil laws were violated in the BP Plc oil disaster in the Gulf of Mexico, the biggest US spill on record. The government is reviewing whether there were violations of the Clean Water Act and the Oil Pollution Act of 1990.”

The US filed the motion in Houston federal court to ‘make clear’ it’s entitled to pursue claims ‘for pollution response costs, environmental damages and other injuries stemming from the oil spill,’ Assistant US Attorney General Tony West wrote.

‘It is simply unconscionable, in the circumstances of this case, that Transocean is attempting to use this’ law to avoid paying states or the US for damages caused by the rig explosion, West said in a May 24 letter to Transocean’s lawyers.”

Read full Bloomberg article here.


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