If BP was negligent, is it liable to all businesses that suffer losses because of the oil spill?

[jody]

Perhaps this has already been discussed on another DU thread or other place so a link would be appreciated.

[Kurt_and_Hunter]

1. No. Economic damage suits are capped at 75 million total.

Some economic claims may be able to be made against part of the eligible $1 billion in the oil-cleanup trust-fund, but I hink that will all be long gone.

[jody]

2. Is that 75 million total or each? n/t

[Kurt_and_Hunter]

3. I believe it is total.

[jody]

4. Thanks. Perhaps someone can elaborate. n/t

[Kurt_and_Hunter]

6. added an article that might help

[jody]

11. Many, many thanks.

[Kurt_and_Hunter]

5. NYT article >

"Under the law that established the reserve, called the Oil Spill Liability Trust Fund, the operators of the offshore rig face no more than $75 million in liability for the damages that might be claimed by individuals, companies or the government. "

http://www.nytimes.com/2010/05/02/us/02liability.html

[jody]

9. Thanks. "no more than $75 million in liability for the damages that might be claimed by individuals,

companies or the government" could mean each?

[Kurt_and_Hunter]

17. The change in the law being proposed today is to raise the cap from $75 million to $10 billion.

Several Dem senators are outraged about the provision and want to change the law from $75 million to $10 billion. So it's safe to say it's total.

[jody]

20. Thanks. n/t

[DireStrike]

8. Why the hell is it capped?

Oh right, money shelters people from responsibility. Some rich fuck wrote the law.

Every last asset of BPs should be seized and distributed out to the people they fucked over. Then whoever is found to be responsible should be sold into slavery for the rest of their lives.

[Kurt_and_Hunter]

10. "trade-off" for creating the post Exxon-Valdez industry funded clean-up fund

1990 law.

I guess $75 million sounded like a lot of money in 1990.

[DireStrike]

13. I'll have to read up on that

Amazing that we have to have a "Trade off" instead of arresting people and seizing their assets to pay for the damage they caused.

[Ruby the Liberal]

Actually, $75m limit voted in in 1986. 1990 was authorizing the use & funding.z

[Kurt_and_Hunter]

18. Thanks. (I was reading the NYT litterally)

[Ruby the Liberal]

22. It took some digging to flush it out. Lots of bad info out there yesterday

Here is a government site on it that cleared it all up: http://www.uscg.mil/npfc/About_NPFC/osltf.asp

[jody]

28. Types of Claims suggests it could be $75 million per claim. see types from your link below

Claim Type
Natural Resource Damages (NRD)
Removal Costs
Property Damage
Boat Damage
Loss of Profits & Earning Capacity
Loss of Subsistence Use of Natural Resources
Loss of Government Revenue
Increased Public Services

[Ruby the Liberal]

33. Interesting! Thanks for adding another piece to the puzzle!

:toast:

[Ruby the Liberal]

12. 1986 under Reagan. DU discussion link:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8263530

Funding/activating it took place in 1990 under Bush the Less Maniacal

[DireStrike]

14. Thanks -nt-

[jody]

15. Thanks. n/t

[jody]

21. Thanks for the DU link, it's a start on an issue that all citizens need to understand. n/t

[Ruby the Liberal]

23. Several Senators started legislation yesterday to raise the $75mm to $10bn

I take issue with hard coding any dollar figure to this kind of thing.

I don't recall who is leading this, but if memory serves it is Menendez (NJ), Lautenberg (NJ) and Nelson (FL). If wrong, someone will be by shortly to correct me.

[jody]

25. Would that mony be paid by BP or we taxpayers? n/t

[Kurt_and_Hunter]

26. In all likelihood it will apply only to future incidents

Some think it can be retroactive but they are probably mistaken. IMO.

[Ruby the Liberal]

27. They are going to try for retroactive, but with our SCOTUS, it is unsure.

[Ruby the Liberal]

29. Both. The fund is funded on $0.08 a BARREL tax, which is passed onto us at the pump.

[jody]

31. As usual corporations reap profits from good and bad times. n/t

[Ruby the Liberal]

32. 'Xactly

Privatized profits, socialized downside.

[texastoast]

24. How was the Valdez litigation handled?

Have the recovery laws changed since then? I know the Natives and other fisherfolks' case went on for a very long time.

[KharmaTrain]

7. All Businesses? That Could Be Quite A List...

They've already closed the Southwest passage...a prime shipping canal into the Mississippi and may have to close others. This would shut down the port of New Orleans...the busiest in the country where the effects on the economy could ripple all over the place. Coffee, fruits, oil...a long list of goods travel through that port and having it shut down would definitely affect all of us. Now I wouldn't mind a check from BP cause I couldn't have a morning cup of java.

I'll bet the definition of liability will end up in the courts for years. There'll be some immediate payouts to people like the shrimpers and for clean-up crews but anyone else is gonna have to stand in a long, long line that will take years to move.

[slackmaster]

16. Every business and every individual in the country is going to lose one way or another no matter...

...who is formally held accountable.

[jody]

19. Agree and that's one reason I object to limited liability for corporations particularly when they

control congress.

Limited liability and caps encourage risk taking and cost cutting of safety measures that end up in disaster.

The game is Heads corporations make billions of dollars, Tails workers pay for corporate losses.

[uppityperson]

30. "If"? eom

[depakid]

34. There has to be proximate cause

some losses that might be said to have been "caused" by the spill will be too remote (or "unforseeable") to recover as damages in a negligence action.

[kestrel91316]

35. Morally,, YES. But of course the law allows it to weasel out to paying for the

damage it has done.

[Blue_In_AK]

36. Like Exxon was liable to the Prince William Sound fishermen?

Yeah, right...