OIL SPILL | Transocean invokes 1851 law to limit damages

TRANSOCEAN Holdings is invoking 160-year-old US admiralty laws to limit its exposure to damage claims relating to the Gulf of Mexico oil spill.

Court documents filed in the federal court in the Southern District of Texas show that Transocean, as owner of the mobile offshore drill ship Deepwater Horizon, will rely on the Limitation of Liability Act of 1851 to limit its damages to $27M. This is the estimated value of Transocean’s interest in the vessel at the time of the blast on 20 April.

The act was enacted by Congress to give US shipowners a chance to compete with foreign-flagged vessels that had limited liability under European seafaring laws. It also provided shipowners protection at a time when shipping was considered a high-risk venture.

Despite lawsuits likely to reach into the billions of dollars against Transocean, among others, the company said in its filing that Deepwater Horizon was “seaworthy, tight, staunch, strong, and properly and sufficiently manned and supplied”.

It also said any personal injury, death or physical damage was not the company’s fault.

Advertisements

1 Comment

Filed under News

One response to “OIL SPILL | Transocean invokes 1851 law to limit damages

  1. Pingback: Tweets that mention OIL SPILL | Transocean invokes 1851 law to limit damages « Safe Seas -- Topsy.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s