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Monday, June 14, 2010

Oil Rig Owner Tries to Use 1851 Law to Cap Damages at $27 Million

Transocean Ltd., which owned the Deepwater Horizon rig that sank in the Gulf of Mexico, has requested a cap limiting their liability to $27 million in damages and to consolidate all lawsuits against it in federal court under the 1851 Shipowner’s Limitation of Liability Act. U.S. Sen. Charles Schumer has called for a repeal of the law, which limits liability to the value of the ship and its cargo.
According to the Federal Rules of Civil Procedure, a vessel owner may file a complaint to limit liability in the

appropriate district court no later than six months after receiving a written claim of loss. To hold the vessel owner liable, a party must demonstrate the vessel owner’s privity and knowledge of negligent operations or dangerous conditions that caused the harm. This can include the owner’s knowledge that personnel failed to follow prudent practices or standard operating procedures, lacked adequate training, qualifications, or background screening
http://www.uslegalforms.com/?auslf=assetunlimited

Best regards
Martin Crawford

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