Macondo/Deepwater Horizon loss, subsequent litigation that ensued and lessons learnt

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In this IIL marine & energy lecture Claude LeRoy Stuart III covered legal lessons from the more significant cases decided in the aftermatch of Macondo/Deepwater Horizon. His presentation emphasised the liability trial, tension on additional assured endorsements, important of choice of law, and scaling to interest provisions.

The Macondo Disaster had a colossal environmental impact with significant, knock-on effects on the energy industry and its underwriters. While there have been wide ranging regulatory changes leading to significant alterations in offshore Gulf of Mexico drilling, we concentrate on the impact of the actual, ensuing litigation. This presentation examined four cases: (i) the liability phase trial to understand the mechanics of well blow out and concept of gross negligence, (ii) determination of additional assured status defined by the nexus between the policy and the drilling contract, (iii) impact of choice of applicable law in applying the Clean Water Act/Oil Pollution Act, and (iv) whether the policy's scaling to interest provision applies to defense costs.

By the end of this lecture members would have gained an insight into:

• Studying four significant cases arising from the Deepwater Horizon/Macondo litigation
• Understanding (i) the mechanics of a well blow out case and the concept of gross negligence, (ii) how additional assured status is impacted by the nexus between the policy and the drilling concept, (iii) the impact of choice of law in applying Federal as opposed to state legislation to widespread pollution, and (iv) whether a policy's scaling to interest provision covers defense costs
• Letting these case help guide a future understanding and handling of Energy Package Policy claims

Speakers Bio:
Claude is a shareholder in Hall Maines Lugrin, Houston, Texas. He is the American legal advisor to, and ex officio member of, the JRC. He focuses on representing the London Market in Energy Package Policy coverage counseling and litigation.

Chair:
Melanie Raven, Senior Underwriter, Ark Underwriting.

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