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June 14, 2010 by Mark Risi

The Oil Spill – The Legal Perspective

The Oil Spill - The Legal PerspectiveUnfortunately, when the term “The Oil Spill” is mentioned today, we know all too well what the term refers to. The oil spill in the Gulf of Mexico is likely one of the gravest ecological disasters of our lifetime. Many people will suffer severe damages, including the loss of their livelihoods. While some media sources, including the Orlando Sentinel, paint a picture that attorneys are “swarming to solicit clients to file suit,” in the wake of the BP oil spill, the truth of the matter is that people have already suffered severe injury, damage and loss. They will likely need legal representation to make sure their rights are protected.
It has now been over 45 days since the explosion in the Gulf of Mexico caused the enormous oil leak which continues to threaten our environment and economy. All efforts to control the spill have failed and it now appears the best hope to contain the leaking oil is the completion of a new oil rig and well that will hopefully allow the oil leak to be diverted to the new rig. That potential solution may be as far as two more months away.
The oil explosion which erupted on April 20, 2010 continues to emit 210,000 gallons of oil into the Gulf daily and has spilled over 9.5 millions gallons of oil into the Gulf waters.
According to some experts, the current spill will likely be larger and more difficult to contain than the Exxon Valdez spill of 1989, or the Santa Barbara spill of 1969 (www.huffingtonpost.com/2010/05/04/bp-could-face-billions-in_0_n_562271.html). Approximately 11 million gallons of crude oil was released into the Prince William Sound in the Exxon Valdez spill, causing detrimental effects on the ecosystems and environment in Alaska. According to the Exxon Valdez Oil Spill Trustee Council, “the Exxon Valdez oil persists in the environment and in places,” and “is nearly as toxic as it was the first few weeks after the spill” (www.evostc.state.ak.us/recovery/status.cfm). The Council goes on to state that the damage from the spill was so severe, than even after 20 years, there are two species that have not recovered, ten species that are still recovering, and five species that are still uncertain of recovery. (www.evostc.state.ak.us/recovery/status.cfm).

It is too soon to know the extent of damage that the BP oil spill will have on the environment and economy. What we do know if that oil spill has already claimed the lives of 11 workers who were presumed dead as a direct result of the explosion. We know that various businesses, including commercial fishermen, charter boat-operators and other businesses linked to tourism have already suffered a loss. We know that substantial damage to wild life is expected in the near future. We know that the oil spill has already damaged many habitats. And we know that the spill has placed many animals and sea life in harm’s way.

There are already thousands of workers, including fishermen, seafood workers, resort and motel owners in the Gulf that have started to seek compensation for the damages they have endured, particularly lost wages. Just like in personal injury claims (for example, car accident injury claims) where the accident victim is seeking compensation for his/her lost wages, the victims of the oil spill must produce financial records of prior wages to illustrate how the explosion affected their income.

The complete cost of containing the 210,000 gallons of oil that gush from the well, as well as the cost of cleaning up the spill is yet to be known. Not only will BP be responsible for such costs, but they will be responsible for paying for damages, such as loss income, wages and economic suffering. How much money could BP be responsible to pay? There is a Federal cap of $75 million that could limit what BP is responsible to pay in total damages for the damage caused by the spill. for which BP could be held accountable. www.huffingtonpost.com/2010/05/04/bp-could-face-billions-in_0_n_562271.html). This cap is the result of the Oil Pollution Act of 1990. The Act states the total liability for an offshore facility shall not exceed $75 million. 23 U.S.C. 2702 Section 1004 (a)(3).
Fortunately, there may be an exception to this cap. The Act provides that the cap will not apply, and will be lifted, if the oil spill was caused as a result of “gross negligence” or “willful misconduct,” or if the explosion was as a result of “the violation of an applicable Federal safety, construction, or operating regulation by, the responsible party, an agent or employee of the responsible party, or a person acting pursuant to a contractual relationship with the responsible party.” 23 U.S.C. 2702 Section 1004 (c)(1)(A)(B).
Therefore, if BP, or one of its agents, is found to have been grossly negligent, or if they are found to have violated a federal safety regulation, then BP may not be protected by the $75 million cap. IF they are found to have been grossly negligent, BP may have to pay for all the damage that the explosion caused and will continue cause in the future regardless of the cost.
However, the direct cause of the explosion has yet to be uncovered, as the companies involved with this oil well continue to point the finger of blame at each other. The two main companies involved are B.P., and the owner of the rig and equipment, Transocean. It will be interesting to see if these two entities fight it out or if they agree to cooperate in resolving the claims brought by this disaster.
In order to determine if BP was grossly negligent, and hence not able to seek the protection of the cap, there are many factors which may be evaluated. The past records of the companies may be important. BP has had various mishaps recently. In 2005, a blast at a BP refinery in Texas took the lives of 15 people and injured 170 people. In 2006, BP had a pipeline leak, which dumped over 200,000 gallons of oil onto the Alaskan North Slope. And just recently, in October, BP was fined $87 million for failing to rectifying safety hazards in the Texas plant.
Again, the full extent of damage caused by the explosion will not be known for some time. If the Exxon Valdez disaster is any indication of the extent of future damages to expect, the damages caused by the BP explosion may have an effect on our environment and economy for generations to come. The potential long-term effects in conjunction with the amount of legal claims the victims will bring, promise that there will not be a speedy resolution of the legal matters. Unless, BP, and Transocean, do the right thing and make fair and just compensation available to the victims, the victims of the oil spill are not likely to see any monetary compensation for a long time.
Whether the victim of an enviromental disaster or injured in a car accident, victims deserve to be compensated for the losses and damages they have to bear due to the negligence of someone else. Our Orlando personal injury attorneys work hard to see that you are comensated for your injuries and losses caused by someone else’s negligence. If you have any questions concerning an Orlando car accident or other personal injury or wrongful death case, please contact us at (407) 423-1313 or by using our free WEB CASE EVALUATION FORM. Someone will contact you promptly to discuss your case with you for free and without obligation.

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