In a feisty exchange between a BP (NYSE:BP) lawyer and lawyer for plaintiffs before U.S. District Judge Carl J. Barbier, BP attorney Don Haycraft implied BP could seek to hide behind the $75 million liability cap law under the Oil Pollution Act.
Originally BP had said they wouldn't seek to protect themselves under the cap.
Plaintiffs' attorney Steven Herman responded saying: "We're shocked over here to hear the defendants now bring up this $75 million cap. We were under the impression [the cap] was waived."
Barbier said the American public did have the impression BP was going to waive the cap, paving the way for higher liability payments.
Haycraft responded saying "I know that BP has paid lots and lots and lots" of money at this time in relationship to the oil spill.
When pressed by Herman if BP is prepared to pay all legitimate claims only up to $75 million, Haycraft said he was "not prepared to answer that question in this context."
According to Kenneth Feinberg, who administers the claimant portion of the BP compensation fund, the oil giant has paid out $1.4 billion in claims so far.
Showing posts with label BP Lawsuits. Show all posts
Showing posts with label BP Lawsuits. Show all posts
Monday, October 18, 2010
Thursday, October 14, 2010
BP (NYSE:BP) Retirement Savings Lawsuits to be Tried in Texas, Not Chicago
Lawyers for workers filing a class action lawsuit against BP (NYSE:BP) over their retirement savings plans and the losses incurred because of the Gulf oil spill had requested for the case to be tried in Chicago, but the Judicial Panel on Multidistrict Litigation ruled the case will be tried in Houston, Texas.
The Panel said, “Certainly, there are differences between the securities actions and the ERISA actions. Notwithstanding those differences, there is significant overlap between the ERISA and securities actions warranting their concentration in a single docket.”
The retirement plan is managed and administered in Chicago, the reason for the request.
Much of the lawsuits are centered around the pre-spill safety record of BP, and what is being asserted is it made the company a safety risk to investors.
Over $1 billion in value from the retirement plan was lost, according to the complaint.
It isn't clear at this time how the rebound in the share price of BP will affect the lawsuit, as shares have gained a lot back since it bottomed out.
The legal question at hand is whether or not the stock of BP was a good investment in the time period the class action is based upon.
The Panel said, “Certainly, there are differences between the securities actions and the ERISA actions. Notwithstanding those differences, there is significant overlap between the ERISA and securities actions warranting their concentration in a single docket.”
The retirement plan is managed and administered in Chicago, the reason for the request.
Much of the lawsuits are centered around the pre-spill safety record of BP, and what is being asserted is it made the company a safety risk to investors.
Over $1 billion in value from the retirement plan was lost, according to the complaint.
It isn't clear at this time how the rebound in the share price of BP will affect the lawsuit, as shares have gained a lot back since it bottomed out.
The legal question at hand is whether or not the stock of BP was a good investment in the time period the class action is based upon.
Wednesday, September 29, 2010
BP (NYSE:BP), Transocean (NYSE:RIG), Halliburton (NYSE:HAL) Sued by Three Mexican States
Lawsuits have been filed by three Mexican states against BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL), asserting the alleged oil plume has reached their shores.
The lawsuits were filed by Tamaulipas, Veracruz and Quintana Roo in a San Antonio court. The beaches of the three Mexican states are popular with tourists and locals.
Damages sought from the Mexican states weren't specified.
There was no comment from BP on the lawsuits. Halliburton said through spokeswoman Teresa Wong that the allegations were without merit, and Transocean said they'll let their position be known during the legal process.
The lawsuits were filed by Tamaulipas, Veracruz and Quintana Roo in a San Antonio court. The beaches of the three Mexican states are popular with tourists and locals.
Damages sought from the Mexican states weren't specified.
There was no comment from BP on the lawsuits. Halliburton said through spokeswoman Teresa Wong that the allegations were without merit, and Transocean said they'll let their position be known during the legal process.
Tuesday, September 21, 2010
BP (NYSE:BP) Claims Can be "Bundled" says Barbier
U.S. Disrict Judge Carl Barbier has given the go ahead to allow claims against BP (NYSE:BP) to be placed in what are being called "pleading bundles," which both the defense and plaintiff lawyers agreed to.
Another agreement was made concerning the complaint process itself, which will be simplified in order to make the filing go quicker.
How that will work is the lawyers of the oil companies will put together a "master" complaint which includes all the causes of action brought against Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and BP, or other oil companies connected to the oil spill.
After the plaintiffs file the master complaint, defense attorneys will be able to respond with a "master" answer.
From there, anyone who wants to file a lawsuit can simply check off every cause of action against the oil companies they want to go after.
An example of what a pleading bundle would entail is a grouping of those claiming economic losses, such as hotels and restaurants.
Another agreement was made concerning the complaint process itself, which will be simplified in order to make the filing go quicker.
How that will work is the lawyers of the oil companies will put together a "master" complaint which includes all the causes of action brought against Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and BP, or other oil companies connected to the oil spill.
After the plaintiffs file the master complaint, defense attorneys will be able to respond with a "master" answer.
From there, anyone who wants to file a lawsuit can simply check off every cause of action against the oil companies they want to go after.
An example of what a pleading bundle would entail is a grouping of those claiming economic losses, such as hotels and restaurants.
Friday, September 17, 2010
BP (NYSE:BP) Manipulated Alabama Governor Says Attorney General
The battle of words between the Governor of Alabama, Bob Riley, and Attorney General Troy King has reached fever pitch, as they're slamming each other through the media, with the latest volley coming from King, who said the governor had been manipulated by BP (NYSE:BP) over the oil spill.
Against the wishes of Riley, who was in the midst of negotiations with BP for payment, King decided to file a lawsuit, which complicated the matter and caused lawyers of BP to advise them to stop the negotiations.
Riley blasted King yesterday for being responsible for budget cuts that wouldn't have happened if he hadn't filed the lawsuit.
King claims Riley should have used the lawsuit as leverage against BP, rather than criticising him for it.
Alabama made a claim against BP for $148 million for tax losses.
Against the wishes of Riley, who was in the midst of negotiations with BP for payment, King decided to file a lawsuit, which complicated the matter and caused lawyers of BP to advise them to stop the negotiations.
Riley blasted King yesterday for being responsible for budget cuts that wouldn't have happened if he hadn't filed the lawsuit.
King claims Riley should have used the lawsuit as leverage against BP, rather than criticising him for it.
Alabama made a claim against BP for $148 million for tax losses.
BP (NYSE:BP) Well to be Sealed Permanently Saturday
BP (NYSE:BP) said today the well which failed on April 20 will be permanently sealed on Saturday, ending that part of the story that has plagued the oil giant.
Late on Thursday BP intersected the Macondo well, whereby they can now prepare the final stage pouring in cement for what is called the "bottom kill."
BP reiterated once the well is cemented, it will be completed abandoned and no more oil or gas extracted from it by them.
The well has been temporarily plugged since July 15, when BP placed a cap on the well.
Now that this will be behind them, the legal actions against them have increased, as Judge Carl Barbier, who is overseeing the hundreds of lawsuits, is beginning the process of organizing them all in able to go forward.
Late on Thursday BP intersected the Macondo well, whereby they can now prepare the final stage pouring in cement for what is called the "bottom kill."
BP reiterated once the well is cemented, it will be completed abandoned and no more oil or gas extracted from it by them.
The well has been temporarily plugged since July 15, when BP placed a cap on the well.
Now that this will be behind them, the legal actions against them have increased, as Judge Carl Barbier, who is overseeing the hundreds of lawsuits, is beginning the process of organizing them all in able to go forward.
Tuesday, September 14, 2010
Halliburton (NYSE:HAL), Transocean (NYSE:RIG), BP (NYSE:BP) Say Victims May Not Have Right To Sue
Saying alleged victims of the oil spill should go through the process of making claims through the BP (NYSE:BP) compensation fund, BP (NYSE:BP), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) say they may not have the right to sue until that happens.
Most of this is surrounding those claiming they incurred economic losses from the disaster.
It is hard to understand why anyone would hire a lawyer before going through the claims process first, as if they're denied, they can then hire a lawyer to file a lawsuit if they choose.
Lawyers are obviously talking them out of that so they can get their piece of the action.
Most will find out they're going to get less and take much longer if they go the lawsuit route.
The oil companies say they want a decision to be made concerning whether or not some of the individuals and businesses claiming economic losses must go through the claims process first.
With lawsuits reaching the discovery stage, they want that to be determined before handing over documents and electronic communication reports to the plaintiffs.
Those making claims against the BP compensation fund can find out within a 90-day period whether or not they've been accepted or denied.
Most of this is surrounding those claiming they incurred economic losses from the disaster.
It is hard to understand why anyone would hire a lawyer before going through the claims process first, as if they're denied, they can then hire a lawyer to file a lawsuit if they choose.
Lawyers are obviously talking them out of that so they can get their piece of the action.
Most will find out they're going to get less and take much longer if they go the lawsuit route.
The oil companies say they want a decision to be made concerning whether or not some of the individuals and businesses claiming economic losses must go through the claims process first.
With lawsuits reaching the discovery stage, they want that to be determined before handing over documents and electronic communication reports to the plaintiffs.
Those making claims against the BP compensation fund can find out within a 90-day period whether or not they've been accepted or denied.
Saturday, August 14, 2010
BP (NYSE:BP) Does No Backgroud Checks - Result, Alleged Rape
To add to the growing woes of BP (NSYE:BP), the latest problem is the failure to perform criminal background checks on people hired to help with the cleanup efforts.
The consequences are a co-worker in the cleanup has allegedly been raped by convicted sex offender, who was hired as a supervisor.
When queried about background checks, a BP security official said they were told to only screen for drugs and nothing else.
Jackson County, Mississippi, Sheriff Mike Byrd, said if there had been background checks in place, it could have prevented the alleged rape from happening, as Charles Rundy Robertson, who was charged with the rape, was on probation from a felony, although not registered as a sex offender, even though he was required to.
Byrd added the background checks would have been done for free by his office, leaving the monetary issue off the table. It seems nobody even thought of it because they were in too big of a hurry to get bodies out there to work.
BP spokesman Robert Wine said the responsibility lies with Aerotek, which they contracted out to do the hiring.
Aerotek said once they send people out to the place of business they are no longer responsible for them.
While everyone can understand the chaos surrounding the oil spill and the frantic efforts to plug it and clean up the damage from it, a company needs to have a controlled response, and not just a knee-jerk reaction which results in this type of outrage.
It looks like another case of finger-pointing, and the courts will probably have to end up sorting out who is responsible. But it's just another failure on the part of BP on the operational side, which seem to be their key weakness as a company.
The consequences are a co-worker in the cleanup has allegedly been raped by convicted sex offender, who was hired as a supervisor.
When queried about background checks, a BP security official said they were told to only screen for drugs and nothing else.
Jackson County, Mississippi, Sheriff Mike Byrd, said if there had been background checks in place, it could have prevented the alleged rape from happening, as Charles Rundy Robertson, who was charged with the rape, was on probation from a felony, although not registered as a sex offender, even though he was required to.
Byrd added the background checks would have been done for free by his office, leaving the monetary issue off the table. It seems nobody even thought of it because they were in too big of a hurry to get bodies out there to work.
BP spokesman Robert Wine said the responsibility lies with Aerotek, which they contracted out to do the hiring.
Aerotek said once they send people out to the place of business they are no longer responsible for them.
While everyone can understand the chaos surrounding the oil spill and the frantic efforts to plug it and clean up the damage from it, a company needs to have a controlled response, and not just a knee-jerk reaction which results in this type of outrage.
It looks like another case of finger-pointing, and the courts will probably have to end up sorting out who is responsible. But it's just another failure on the part of BP on the operational side, which seem to be their key weakness as a company.
Friday, August 13, 2010
BP (NYSE:BP), Transocean (NYSE:RIG) Sued by Alabama
The attorney general of Alabama announced he's suing BP (NYSE:BP) and Transocean (NYSE:RIG) over the Gulf oil spill, saying they've been saying one thing and doing another.
Attorney General Troy King said in a statement Friday, "their history of saying one thing and doing another, and now, new information that they have been secretly working to gain a legal advantage, can only further damage our people."
Two lawsuits were filed on Thursday in federal court in Montgomery, one for Transocean and the other for BP.
In the lawsuit, it was asserted the "defendants were slow and incompetent, if not dishonest, in their announcements and warnings to the state of Alabama and its citizens and businesses." That was a reference to the original estimate of the oil flow of 1,000 barrels a day, which ended up in the last estimate being as high as 60,000 barrels released into the Gulf a day.
The lawsuit also cited the use of Corexit to disperse the oil, which they're seeking damages for. They could have trouble there, as government agencies have said it's relatively harmless, although that's disputed by others.
Governor Bob Riley has opposed the lawsuit, saying he had hoped to work with BP on an out-of-court settlement, which does make more sense in that it would pay for things that are desperately needed now, rather than possibly litigate for a long period of time, without a guarantee of winning the case.
Attorney General Troy King said in a statement Friday, "their history of saying one thing and doing another, and now, new information that they have been secretly working to gain a legal advantage, can only further damage our people."
Two lawsuits were filed on Thursday in federal court in Montgomery, one for Transocean and the other for BP.
In the lawsuit, it was asserted the "defendants were slow and incompetent, if not dishonest, in their announcements and warnings to the state of Alabama and its citizens and businesses." That was a reference to the original estimate of the oil flow of 1,000 barrels a day, which ended up in the last estimate being as high as 60,000 barrels released into the Gulf a day.
The lawsuit also cited the use of Corexit to disperse the oil, which they're seeking damages for. They could have trouble there, as government agencies have said it's relatively harmless, although that's disputed by others.
Governor Bob Riley has opposed the lawsuit, saying he had hoped to work with BP on an out-of-court settlement, which does make more sense in that it would pay for things that are desperately needed now, rather than possibly litigate for a long period of time, without a guarantee of winning the case.
Thursday, August 12, 2010
Feinberg Says BP (NYSE:BP) Compensation Fund Better Than Lawsuits
Kenneth Feinberg, who will be administering the BP (NYSE:BP) compensation fund, said those who are economically affected by the oil spill would do better if they went the route of filing claims rather than a lawsuit.
According to Feinberg, when talking to potential claimants in Florida, the fund would not only be a faster way to get paid, but one which would pay more than legal action would.
“You will get quicker more generous treatment than if you file a lawsuit,” said Feinberg.
One thing everyone needs to consider is if you do accept payment from the fund, there is no longer any option to sue BP, as to receive the payment claimants will have to waive the right to legal action.
Feinberg explained, “If you want full and final payment for all prospective loss ... come in, file a claim, and if you accept the check that is offered, then you waive the right to sue BP. Your choice – 100 per cent your choice.”
Individuals who qualify will be able to receive a check with 24 hours of filing a claim, while businesses will be compensated within a week of filing their claim.
According to Feinberg, when talking to potential claimants in Florida, the fund would not only be a faster way to get paid, but one which would pay more than legal action would.
“You will get quicker more generous treatment than if you file a lawsuit,” said Feinberg.
One thing everyone needs to consider is if you do accept payment from the fund, there is no longer any option to sue BP, as to receive the payment claimants will have to waive the right to legal action.
Feinberg explained, “If you want full and final payment for all prospective loss ... come in, file a claim, and if you accept the check that is offered, then you waive the right to sue BP. Your choice – 100 per cent your choice.”
Individuals who qualify will be able to receive a check with 24 hours of filing a claim, while businesses will be compensated within a week of filing their claim.
Wednesday, August 11, 2010
Lead Law Firm Dropped from Alabama Case against BP (NYSE:BP)
The law firm Balch Bingham, which had been picked to represent the state of Alabama in its case against BP (NYSE:BP), has been dropped because of potential conflicts of interest.
Evidently the law firm represented Transocean Ltd. (NYSE:RIG) in a prior case unrelated to the oil spill, which is the source of the possible conflict.
The state of Alabama will be pursuing cases against Transocean and BP, plus Halliburton (NYSE:HAL) and Cameron International (NYSE:CAM) in order to attempt to recover lost tax revenue. All of these companies had a part they played in the Deepwater Horizon oil rig.
Interestingly, Alabama Governor Bob Riley isn't a proponent of the lawsuit, and would rather attempt to resolve claims out of court.
That makes sense in light of the time it could take to resolve the matter, when they need the money now. Why not try to arbitrate first, and if you can't get close, then why file a lawsuit?
Evidently the law firm represented Transocean Ltd. (NYSE:RIG) in a prior case unrelated to the oil spill, which is the source of the possible conflict.
The state of Alabama will be pursuing cases against Transocean and BP, plus Halliburton (NYSE:HAL) and Cameron International (NYSE:CAM) in order to attempt to recover lost tax revenue. All of these companies had a part they played in the Deepwater Horizon oil rig.
Interestingly, Alabama Governor Bob Riley isn't a proponent of the lawsuit, and would rather attempt to resolve claims out of court.
That makes sense in light of the time it could take to resolve the matter, when they need the money now. Why not try to arbitrate first, and if you can't get close, then why file a lawsuit?
Can BP (NYSE:BP) Get Fair Trials in New Orleans?
I'm not sure if people understand the implications of rejoicing in the majority of cases to be tried related to BP (NYSP:BP) and the consequences of their oil spill has been announced to be in New Orleans, but they're basically saying BP isn't going to get a fair shake in that location.
That's an unfortunate conclusion, as there should be no favoritism shown by the judges based on the venue, and because Americans are all positive about these cases being decided to be tried there, reveals they understand the poor condition of the judiciary in that they believe it's positive for plaintiffs in the first place.
One lawyer stated, “Louisiana is bearing the brunt of the blow so far. From the victims’ standpoint, you couldn’t have a better location.”
I find it troubling that the very transparent and open assumptions by many are BP will get harsher treatment because the trials are at a major city closest to the disaster.
Presiding over the 300 plus lawsuits against BP will be U.S. District Judge Carl Barbier, where he'll take in cases related to lost revenue, environmental damage, and wrongful death suits concerning the workers killed when the Deepwater Horizon oil rig first exploded.
There will be some lawsuits tried outside of New Orleans, which will entail investor lawsuits related to the oil spill. They will be tried in Houston, Texas.
That's an unfortunate conclusion, as there should be no favoritism shown by the judges based on the venue, and because Americans are all positive about these cases being decided to be tried there, reveals they understand the poor condition of the judiciary in that they believe it's positive for plaintiffs in the first place.
One lawyer stated, “Louisiana is bearing the brunt of the blow so far. From the victims’ standpoint, you couldn’t have a better location.”
I find it troubling that the very transparent and open assumptions by many are BP will get harsher treatment because the trials are at a major city closest to the disaster.
Presiding over the 300 plus lawsuits against BP will be U.S. District Judge Carl Barbier, where he'll take in cases related to lost revenue, environmental damage, and wrongful death suits concerning the workers killed when the Deepwater Horizon oil rig first exploded.
There will be some lawsuits tried outside of New Orleans, which will entail investor lawsuits related to the oil spill. They will be tried in Houston, Texas.
BP (NYSE:BP) Venue for Lawsuits Will be in New Orleans
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.
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.
Tuesday, August 10, 2010
BP (NYSE:BP) Sued By Texas Over Refinery Pollution
The BP (NYSE:BP) refinery in Texas which killed 15 workers in 2005 continues to be an albatross around the neck of the oil giant, as it has been sued again by the state of Texas over pollution violations.
It doesn't help them at all to have this negative publicity in light of the progress they're finally achieving at the oil spill in the Gulf of Mexico.
This lawsuit is centered around a fire at the facility on April 6, when 500,000 pounds of pollutants were allegedly released into the air during a 40-day period.
Major elements of the case are the fire could have been prevented with proper maintenance, but probably more importantly, the pollutants could have been managed by shutting down the two units until repairs of the broken compressor were finished.
Texas Attorney General Greg Abbott said, "BP made very little attempt to minimize the emission of air contaminants caused by its actions, once again prioritizing profits over environmental compliance."
That determination was based around the decision of BP to restart not long after the fire.
It doesn't help them at all to have this negative publicity in light of the progress they're finally achieving at the oil spill in the Gulf of Mexico.
This lawsuit is centered around a fire at the facility on April 6, when 500,000 pounds of pollutants were allegedly released into the air during a 40-day period.
Major elements of the case are the fire could have been prevented with proper maintenance, but probably more importantly, the pollutants could have been managed by shutting down the two units until repairs of the broken compressor were finished.
Texas Attorney General Greg Abbott said, "BP made very little attempt to minimize the emission of air contaminants caused by its actions, once again prioritizing profits over environmental compliance."
That determination was based around the decision of BP to restart not long after the fire.
Thursday, August 5, 2010
BP (NYSE:BP) Workers Sue the Oil Giant for $10 Billion
Workers at the Texas City refinery of BP (NYSE:BP) have sued the company for $10 billion over the equipment malfunction which released about 500,000 pounds of pollutants into the air, which included benzene.
BP also continues to struggle to fix the original problem at the refinery, five years after it happened.
These are two separate incidents; one of which killed 15 workers and injured hundreds more in a 2005 fire, and the latest one, which involves the $10 billion lawsuit, that happened just this spring.
The latest incident could cost the company even more, as it wasn't until 40 days later that they had a full report filed with the environmental commission (they did file an initial report after the accident), and BP didn't tell city leaders about the pollutants until a day before the final report was filed.
In this atmosphere, it's amazing to see what appears to be this type of reckless behavior which just begs for a lawsuit, and BP got what they wished for in this initial $10 billion lawsuit, which may be just the first of many.
BP also continues to struggle to fix the original problem at the refinery, five years after it happened.
These are two separate incidents; one of which killed 15 workers and injured hundreds more in a 2005 fire, and the latest one, which involves the $10 billion lawsuit, that happened just this spring.
The latest incident could cost the company even more, as it wasn't until 40 days later that they had a full report filed with the environmental commission (they did file an initial report after the accident), and BP didn't tell city leaders about the pollutants until a day before the final report was filed.
In this atmosphere, it's amazing to see what appears to be this type of reckless behavior which just begs for a lawsuit, and BP got what they wished for in this initial $10 billion lawsuit, which may be just the first of many.
Friday, July 30, 2010
BP's (NYSE:BP) Next Battle: Legal Venue
Now that the crisis of oil spewing into the Gulf of Mexico is winding down, the focus is now on the lawsuits BP (NYSE:BP) will face for years to come.
The two immediate issues in regard to that are whether or not to have the venue in Houston or New Orleans. Obviously BP wants the Houston location and plaintiffs the New Orleans venue.
Arguments have been heard by the federal judges, but it could take up to a month before a final decision is made.
One possible result could be that neither venue is the chosen venue, but they could be one among several. The huge number of cases could make it prohibitive to have them all tried in one district, which could lead to several venues in order to make things move faster.
Some of this will depend on the number of people or businesses who may decide to get some money more quickly through the escrow fund, rather then wait for an underterimined and unpredictable number of years.
Kenneth Feinberg, who is overseeing the escrow fund, had made it clear you either accept their decision or file a lawsuit. If claims are offered and accepted, there is no recourse to those making the decision to accept the claims.
But that could be much better in a lot of instances than going through years of litigation with no guarantee of getting anything. And if plaintiffs are older, they very easily could pass away over the duration of the case.
Lawyers of course will attempt to persuade people and businesses to sue in order to get their huge piece of the pie, but those using the escrow fund avenue wouldn't have to pay, as lawyers will be on site to help them for free.
It will be interesting to see if the judges would allow the venue to be in New Orleans, as the chances of a fair trial there in light of the enormous media attention and coverage is highly unlikely.
The two immediate issues in regard to that are whether or not to have the venue in Houston or New Orleans. Obviously BP wants the Houston location and plaintiffs the New Orleans venue.
Arguments have been heard by the federal judges, but it could take up to a month before a final decision is made.
One possible result could be that neither venue is the chosen venue, but they could be one among several. The huge number of cases could make it prohibitive to have them all tried in one district, which could lead to several venues in order to make things move faster.
Some of this will depend on the number of people or businesses who may decide to get some money more quickly through the escrow fund, rather then wait for an underterimined and unpredictable number of years.
Kenneth Feinberg, who is overseeing the escrow fund, had made it clear you either accept their decision or file a lawsuit. If claims are offered and accepted, there is no recourse to those making the decision to accept the claims.
But that could be much better in a lot of instances than going through years of litigation with no guarantee of getting anything. And if plaintiffs are older, they very easily could pass away over the duration of the case.
Lawyers of course will attempt to persuade people and businesses to sue in order to get their huge piece of the pie, but those using the escrow fund avenue wouldn't have to pay, as lawyers will be on site to help them for free.
It will be interesting to see if the judges would allow the venue to be in New Orleans, as the chances of a fair trial there in light of the enormous media attention and coverage is highly unlikely.
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