* To Our Friends in the Business and Insurance Communities:
August, 2010
The blowout on the DEEPWATER HORIZON on the night of April 22, 2010 has given rise to the worst environmental disaster in U.S. history. An estimated 92 to 180 million gallons of oil have spilled into the Gulf of Mexico. Every Gulf state has now reported oil in its territorial waters and many have seen significant damage to shorelines and aquatic life. The situation presents insurers and other businesses with enormous potential exposures. A prominent New Orleans attorney has called the disaster the "biggest liability case ever" and a growing number of seminars are charging high prices to mobilize lawyers from across the country by teaching the "nuts and bolts" of bringing claims on account of the spill. To date, over 300 lawsuits, many of them class actions, have been filed throughout the Gulf South. Class action attorneys have already retained experts in toxicology, environmental impact, petroleum engineering and oceanography to build cases against any potential wrongdoer.
In addition to the key target defendants, Transocean, British Petroleum (BP), Halliburton Energy Services, Inc. and Cameron International Corporation, many entities are likely to be targeted by plaintiffs or third-partied into the Gulf Oil Spill litigation in the coming months, including parts manufacturers/suppliers, installation and/or service contractors, design/engineering professionals and others with some relationship to the rig or the drilling operation. To assist our clients in responding to this catastrophic event, we have prepared this CM Special Report to provide a comprehensive analysis of the claims that may arise from the Gulf Oil Spill including property damage, casualties, and directors' and officers' liability, as well as the insurance coverage issues arising from those claims. We will also address claims arising out of environmental contamination and identify subrogation opportunities and hurdles. The impact of maritime and bankruptcy law will also be explored.
Clausen Miller is no newcomer to responding to catastrophic events in the Gulf. For over 15 years, CM partners Kimbley A. Kearney and Amy R. Paulus have counseled and represented insurance professionals and operators in connection with offshore oil and gas exploration and production activities. Before joining CM, Kim had eight years of experience representing major oil companies and offshore operators in the Gulf. Kim and Amy have updated their white paper "Offshore Oil & Gas Drilling: What You Need to Know about the Risks and Insurance Coverages." The paper is available now on our website (www.clausen.com) as a supplement to this Special Report.
We hope that this Special Report will be of value to all of our clients whose businesses will be impacted by the Gulf Oil Spill.
James M. Hoey Managing Partner
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