In Re Oil Spill by the Oil Rig "Deepwater Horizon"
808 F. Supp. 2d 943
| E.D. La. | 2011Background
- MDL involves the Deepwater Horizon oil spill with B1 Master Complaint alleging non-governmental economic loss and property damages from BP, Transocean, Halliburton, M-I, Cameron, Weatherford, Anadarko, MOEX, MOECO and Dril-Quip.
- DEEPWATER HORIZON was a mobile offshore drilling unit operating on navigable Gulf waters; BOP and drill string are alleged as vessel gear.
- Court concludes admiralty jurisdiction and OCSLA jurisdiction apply; state law is not adopted as surrogate under OCSLA.
- OPA provides limits and a presentment procedure; its savings provisions preserve some maritime law remedies and state authority but do not broadly preserve all state-law claims.
- Robins Dry Dock pre-OPA generally bars pure economic-loss claims absent the commercial fishermen exception; OPA permits economic-loss recovery and punitive-damage possibilities under maritime law for certain claimants.
- Key issues include vessel status, choice of law, OPA presentment, who may be liable (non-Responsible vs. Responsible Parties), and whether punitive damages remain available.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Deepwater Horizon is a vessel for admiralty purposes | B1 alleges vessel status as a floating drilling unit. | Cameron argues it was not a vessel when moored to seabed with 5,000 ft drill pipe. | Deepwater Horizon is a vessel; not a fixed structure. |
| Whether OCSLA or admiralty governs B1 claims and applicable law | State law may supplement maritime law where not displaced. | OCSLA or adjacent-state law governs; state law may apply via PLT test. | Admiralty law governs; OCSLA does not adopt adjacent-state law here. |
| Whether state-law claims are preempted by maritime law and/or OPA | State law can supplement maritime law; FPDPCA claims may apply. | State-law claims are not viable in offshore context and OPA preempts them. | State-law claims are dismissed; no surrogate state-law under OCSLA; preemption by maritime law. |
| Whether OPA displaces general maritime law claims for non-Responsible Parties | OPA allows broad economic-loss recovery and punitive damages under maritime law. | OPA preempts pre-OPA general maritime remedies against Responsible Parties; limits apply. | OPA does not displace general maritime law claims against non-Responsible Parties; presentment governs claims against Responsible Parties. |
| Whether presentment under OPA is a mandatory condition precedent to filing suit against the Responsible Party | Presentment requirements are satisfied for many B1 claimants. | Presentment is mandatory and many B1 claims may be dismissed for lack of presentment. | Presentment is mandatory; Court tolerates dismissal without prejudice for non-presented claims due to MDL logistics. |
| Whether punitive damages remain available under general maritime law | Punitive damages are available under general maritime law post-OPA. | OPA might preclude punitive damages in oil-spill liability. | Punitive damages available under general maritime law for both Responsible and non-Responsible Parties where pre-OPA claims exist. |
Key Cases Cited
- Offshore Co. v. Robison, 266 F.2d 769 (5th Cir. 1959) (vessel status of floating platforms for admiralty purposes)
- Demette v. Falcon Drilling Co., Inc., 280 F.3d 492 (5th Cir. 2002) (special-purpose movable drilling rigs are vessels; retention of control matters)
- Grand Isle Shipyard, Inc., 589 F.3d 778 (5th Cir. 2009) (PLT test for applying surrogate state law under OCSLA; en banc discussion)
- Yamaha Motor Corp. v. Calhoun, 516 U.S. 199 (1996) (state-law remedies can supplement maritime law where no federal remedy exists)
- Exxon Shipping Co. v. Baker, 554 U.S. 471 (2008) (CWA preemption analysis; no displacement of punitive damages by federal statute)
- Atlantic Sounding Co. v. Townsend, 557 U.S. 404 (2009) (punitive damages and maintenance and cure context; preemption considerations)
- Miles v. Apex Marine Corp., 498 U.S. 19 (1990) (punitive damages in maritime context and statutory remedies)
