In what some are disturbingly hailing as a victory for plaintiffs, BP (NYSE:BP) will have to defend itself in charges related to the Macondo oil spill in New Orleans.
I say disturbingly above, because the implication is the court will side with plaintiffs in the cases before they're even tried, casting a dark shadow over the process if the venue is what decides the outcomes of the cases, and not the facts involved.
BP had been hoping for the cases to be tried in Texas, but when you consider the refinery problems faced by the oil giant there now, it shouldn't have been considered a venue which would have favored BP, even with a lot of oil companies having a presence in Texas.
Either way, the venue will be New Orleans, and nothing will change that going forward.
A panel of judges made the decision, saying, “Without discounting the spill’s effects on other states, if there is a geographic and psychological ‘center of gravity’ in this docket, then the Eastern District of Louisiana is closest to it.
Referring to U.S. District Judge Carl Barbier, who will preside over 300 plus suits, the panel said he already has “considerable” experience with litigating across numerous districts, and “has been already actively managing dozens of cases in this docket.”
There will be a few exceptions to the venue being in New Orleans, as BP investors will put forth their case before U.S. District Judge Keith P. Ellison in Houston, where it'll be decided if they can receive damages from the share price of BP falling because of the accident.
According to the court order, the parameters of the other cases Ellison will preside over include those concerning civil securities fraud claims, shareholder derivative actions, and claims by employees over losses in company retirement savings plans.
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