| http://www.chron.com/disp/story.mpl/headline/biz/7004426.html Judge stays spill cases at Transocean's request By MARY FLOOD Copyright 2010 Houston Chronicle May 13, 2010, 9:52PM A Houston judge agreed Thursday to stay pending cases against Transocean arising from the April 20 disaster that destroyed its Deepwater Horizon drilling rig, killed 11 workers and created a growing oil spill. U.S. District Judge Keith Ellison issued an order suspending the cases against Transocean at the company's request after it sought a $26.7 million limit to its liability in the lawsuits. Lawyers involved in the myriad lawsuits filed against Transocean, rig leaser BP and others said they had expected Transocean would attempt such a move under the Limitation of Liability Act, a maritime law that allows vessel owners to limit liability to the value of a vessel and its freight. The law was passed in the mid-1800s to protect U.S. vessel owners, eliminate some risk in crisis situations and aid competition with foreign ships. Guy Cantwell, a spokesman for Transocean, said the company filed the request on instruction from its insurers and to preserve its insurance. In the filing, Transocean denies that the explosion and resulting injury and oil spill are its fault. "We believe it is necessary to protect the interest of employees, shareholders and the company," Cantwell said. He said one goal is to consolidate claims against Transocean. Lawyers involved in the litigation say that Trans-ocean's request, if successful, could result in Ellison's court taking some other Deepwater Horizon litigation that names Transocean. A list of 102 lawsuits already filed against the company was filed with the court Thursday. "Transocean has compounded this terrible tragedy with a shameful legal filing that is intended solely to protect the company's interests," said Houston lawyer Kurt Arnold, who has filed several lawsuits resulting from the offshore explosion. "They haven't even said they're sorry, much less take responsibility. Now they're running off to court in hopes of getting a ruling that will limit their liability to what is on the bottom of the ocean. I think the filing is completely frivolous," Arnold said. Some lawyers, anticipating Transocean's move, have filed parallel lawsuits - one naming Transocean and the other against BP, Cameron International and Halliburton for their various roles in the building, maintenance or use of the rig. One of those lawyers, Tony Buzbee, predicted that Transocean's attempt to limit its liability will fail. "What it does provide them is a central forum to slow down the cases and to try to leverage a global resolution," Buzbee said. He said that to win, Transocean has to prove that management onshore had no knowledge of the circum-stances that caused the blast. Buzbee said he has a witness who says Transocean and BP knew about abnormal pressure tests before the explosion. Documents and testimony at congressional hearings this week also made reference to testing anomalies the day of the explosion. Lawyers on both sides of the case have already asked federal authorities to set up a multidistrict litigation court to hear pretrial matters on federal lawsuits stemming from the oil spill. Plaintiffs lawyers in Louisiana have asked that pretrial matters in spill-related cases be heard by one of a handful of federal judges in New Orleans. BP has asked that the cases be heard by Houston-based U.S. District Judge Lynn Hughes. mary.flood(at)chron.com |