UPDATE: Carnival Sues Against BP, Others, Claiming Oil Spill Damages
April 27 2011 - 5:58PM
Dow Jones News
Cruise operator Carnival Corp. (CCL) filed a lawsuit in a
Louisiana court last week against several parties associated with
the Deepwater Horizon oil rig, seeking damages related to the
massive oil spill last April that polluted the Gulf of Mexico.
The suit, filed last Wednesday, names BP PLC (BP), Transocean
Ltd. (RIG), Halliburton Co. (HAL), Cameron International Corp.
(CAM), Anadarko Petroleum Corp. (APC), Weatherford International
Ltd. (WFT) and other entities associated with the Deepwater
Horizon. Carnival claims the historic oil spill caused it to "incur
increased fuel costs and additional vessel cleaning costs," plus
caused the loss of revenue and passenger bookings on cruises at
ports it serves in Florida, Alabama, Texas and Louisiana.
Tim Gallagher, a spokesman for Carnival, said Carnival had filed
a $10 million claim with the Gulf Coast Claims Facility, the claims
facility established by BP to pay and settle claims from shrimp and
other fisherman, tourism concerns and others whose businesses were
harmed as a result of the oil spill. The GCCF, administrated by
"Pay Czar" attorney Kenneth Feinberg, denied the claim "without
explanation," Gallagher said, so Carnival opted to sue.
A spokeswoman for Feinberg and the GCCF declined to comment,
citing confidentiality promises to the claimants.
Carnival, in the suit, seeks unspecified damages, plus interest
and legal fees, as well as any punitive damages and other relief
the court deems appropriate. The suit, first reported by Reuters,
is one of hundreds against the parties in the U.S. District Court,
Eastern District of Louisiana, and was filed on April 20, the
deadline to file litigation that marked the one-year anniversary of
the explosion and fire on the Deepwater Horizon that precipitated
the massive oil spill.
Smaller Carnival competitor Royal Caribbean Cruises Ltd. (RCL)
hasn't filed any claims or lawsuits against BP or any other party,
a spokeswoman said.
Some of the parties named as defendants have recently filed
suits against each other, seeking cross-claims to mitigate their
share of the financial responsibility for the tens of billions of
dollars in damages ultimately expected to be awarded to victims and
the people and businesses affected by the spill. A federal judge
will begin hearing the cases in February 2012.
Transocean owned the rig and was sharply criticized for a "poor
safety culture" last week in a U.S. Coast Guard investigation,
charges Transocean then said it strongly disagreed with and are
refuted by evidence the Coast Guard has. A Transocean spokesman in
an email declined to comment on the Carnival suit, citing company
policy on pending litigation.
A spokeswoman for Cameron, which made the blowout preventer
Carnival and others claim failed to operate properly and prevent
the explosion on the rig, declined to comment.
"We intend to vigorously defend any litigation, fines, and/or
penalties," related to the spill, a Halliburton spokeswoman said in
an emailed statement. "Halliburton is indemnified by BP for all
potential liability claims and expenses arising from the incident
(other than claims by Halliburton's employees and with respect to
loss or damage to Halliburton's property)."
The other parties named as defendants either didn't promptly
return phone calls and emails or couldn't be reached for
comment.
-By Maxwell Murphy, Dow Jones Newswires; 212-416-2171;
maxwell.murphy@dowjones.com
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