Gulf Coast Braces for Economic Disasater In Wake of BP Oil Spill

[marmar]

AlterNet / By Sarah Laskow

Gulf Coast Braces for Economic Disasater In Wake of BP Oil Spill
As if the ecological destruction weren't enough, the Gulf Coast economy faces billions in losses from BP's recklessness.

May 8, 2010 |


The industries that drive the Gulf Coast economy—fishing, tourism, and gaming—are bracing for the impact of the catastrophic British Petroleum oil spill, as businesses across the region face the prospect of billions in damage that could last for years to come.

The Gulf Coast seafood industry alone is a $2.4 billion annual business. Four of the top seven fishing ports in the country are in the Gulf of Mexico. The beaches and wildlife areas support at $20 billion tourism industry.

BP, which was leasing the Deepwater Horizon rig that continues to gush tens of thousands of gallons of oil each day, will have to pay out of its own pocket to clean up the spill. But it might not have to pay for the economic losses the spill inflicts on the Gulf Coast. Lawyers have already lined up to extract retribution from the company; one firm in Houston filed a suit which claims that the fishing industry alone stands to lose $2.5 billion. And lawmakers in Washington working to hold BP accountable for the costs are working off of damage estimates as high as $12 billion.

Despite the certainty of economic consequences, current federal law actually caps BP's liability for economic damages at $75 million. Sen. Bob Menendez (D-NJ), along with Sen. Frank Lautenberg (D-NJ) and Sen. Ben Nelson (D-FL), introduced a bill that would raise the cap to $10 billion. ...........(more)

The complete piece is at: http://www.alternet.org/economy/146786/gulf_coast_braces_for_economic_disasater_in_wake_of_bp_oil_spill

[flyingfysh]

1. why don't we consider each day of spill as a new incident?

Each day, they are causing damage. So the $75 million cap should be per day of damage.

[FBI_Un_Sub]

2. Crawfish etouffee --- gone ?

I am sure going to miss my shrimp and Crawfish etouffees -- have to switch to San Francisco (and Seattle) Dungeness crab etouffee.

[jody]

3. Limited liability laws infringe on the 7th Amend right because it limits jury awards.

Amendment VII
In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.

I don't believe "common law" limits the amount a jury can award a plaintiff in "Suits at common law".

[FBI_Un_Sub]

4. Price Anderson

Busting limited liability may motivate a "Price Anderson" remedy.

[jody]

5. Rather than Price-Anderson Act to shelter corporations from risk govt. should undertake the venture.

Since society absorbs cost of failure by limiting a corporation's risk with PA why not let society reap any profits that might ensue.

Thanks for reminding me about Price-Anderson., you make a very good point.

[HockeyMom]

6. I couldn't sell my house on the Gulf Coast of Florida

before, now it will NEVER happen. I just want to get out of here and go back North.