Let’s talk about this little piece of news from Mother Jones (emphasis mine):
Transocean, the owner of the Deepwater Horizon rig that exploded and is still spewing millions of gallons of crude oil into the Gulf of Mexico, is sending a message loud and clear: it intends to assume very little financial responsibility for the disaster. In a filing submitted to a federal court in Houston this week, the company has invoked an obscure, 159-year-old law to contend that it should only have to pay for the cost of salvaging the debris of the rig from the ocean.
Right, because the remnants of the rig are our biggest problem right now.
At the very same time, Transocean is also petitioning to consolidate its outstanding lawsuits in an attempt to avoid paying worker compensation down the road. Let’s not forget Transocean was trying to get workers to sign forms saying they weren’t injured and didn’t know what happened when the rig just plain exploded underneath their feet.
From McClatchy (emphasis mine):
In a statement, Transocean said the court petition was filed at the request of its insurance companies, and the petition will allow the company to consolidate all outstanding lawsuits before a single federal judge in Houston. The company said it now faces more than 100 lawsuits over the spill in several states.
Lawyers for those injured in the blast said the petition could also prevent any claims filed more than six months after the accident
Too bad for anyone who may suffer from delayed PTSD as a result of a rig exploding beneath you. You’re out of luck.
And the list of casualties just keeps growing, and growing, and growing…
UPDATE: Well, at least someone’s trying…
Jo Lang, a prominent national lawmaker for [Switzerland's Green Party], said he plans to introduce a motion in parliament calling for any taxes paid by Transocean in Switzerland last year to be donated toward helping those who suffered as a result of the rig disaster.
The amount is likely to be symbolic, as Transocean pays hardly any taxes in Switzerland.
"We want to show that the oil spill in the Gulf reaches all the way to Zug," Lang told The Associated Press.



21 Comments

Thanks Brian. Recd
Hopefully (if that old law which Transocean wishes to hide behind is valid) it is intended for American companies ONLY!
Transocean moved its headquarters to Switzerland in order to avoid paying taxes in the USA.
The limitation of liability law for ship owners is actually not very obscure. I recall quite clearly this law being invoked by NYC a couple of years ago after the terrible Staten Island Ferry accident. And I don’t think it protects the vessel owner is cases of negligence.
Nice angle. Hope it sticks.
I’ve heard not a peep about any so-called free market solutions since this rig blew. Nor do I recall any kind of talk about personal responsibility. Have I missed something, or is this further proof of the welfare for me (privatized profit and scialized costs) but not for thee?
Obscure?
Please. It’s not like this law is Youngstown v. Sawyer or anything. Now that’s obscure. Just ask John Yoo.
This was a pretty good piece for regular TV. The time constraint thing continues to drive me crazy, however. MTV short attention span bullshit. How about devoting the full hour of the program? Hey, there’s a thought…
You see we still all think our law works for us, when we are shown daily that it only works for big money interests.
When has anyone, any company, anyone in Government, any Corporation, any white collar criminal ever really got held accountable for what they do.
Even Bernie Maddoff went to jail, but never could, or had to try and pay off the problem He caused.
We keep trusting a system of Law that has been corrupted by the big money interests as much or more than our Government.
Transoceanic is desperate if this the best they can do. This law they’re attempting to use predates the American Civil War.
The court will have to hold a seance to ask the spirit of President Fillmore what he thinks of the issue and use of the law.
But . . . but . . . but . . . Martha Stewart went to jail for insider trading! See how our governmental agencies (e.g. SEC) are looking out for our best interests. /s
Kent Jones in Swiss Alps in lederhosen waving waving a Swiss flag in background behind Rachel Maddow as she does story about Transocean, the Zug Switzerland HQed deep sea drilling corporation invoking that 159-year old law.
Don’t get mad at Transocean for making money. It’s not a bug, It’s a feature. It’s what corporations do. Unless you stop them. paraphrasing what Rachel Maddow said.
Get the video from Maddow Friday May 14th, 2010 show. It communicates the point much better than I
The court will just rule with what Transoceans Lawyers say. No seance needed.
… that is quite an image …
The company pays hardly any taxes in Switzerland? I thought Switzerland had some of the highest tax rates in the world? How have they managed that?
The law predates the American Civil War indeed!
Most Anglo-American maritime law has it roots in the ancient commercial codes of Greece and Rhodes.
maritime law is a very odd and esoteric subset of the law.
and it allows for lots of things not allowed for under non-maritime law.
offshore platforms are often classified as ships. and licensed under flags of convenience[aka panama, et alia]. i think that this transocean drilling ship employed such a flag of convenience device.
perhaps there is an attorney tuning in who can inform us as to how maritime law governs this catastrophe.
and more interestingly, how flags of convenience and maritime law govern exporation drilling platforms and production platforms in the ocs gulf of mexico.
it is my thinking that maritime law governs workers on these platforms. that land-based workers compensation may not apply.
and that maritime law favors the ship[sic] owners.
anyone out there who can enlighten us further?
” In a terse statement sent after the Zurich stock market closed,
Transocean said it would distribute some $1 billion in dividend to
shareholders, or about $3.11 a share. The company’s stock has lost about
a quarter of its value since the oil spill and closed 2.6% lower on the
Zurich exchange Friday at 74.10 Swiss francs (US$65.62).” ~WSJ
Link to referenced Rachel Maddow Show
It only pays taxes in Switzerland on the percentage of oil drilling it does in Switzerland which, I’m guessing, is almost less than zero.
Switzerland has around European-average tax rates for Swiss citizens and companies, but very low tax rates for foreign residents (negotiable!), corporations and investments.
They’re not called a tax haven for nothing.
OT: But I have to confess that I had to scratch my head at the Rachel Maddow Show’s take: high mountains and alp horns – O.K. that’s not really typical for Zug, but it is kinda “generic Swiss” which, I guess, is good enough. But Lederhosen? In Switzerland?
Compensation for injuries on drilling rigs in the Gulf falls under the Jones Act, which allows the injured “seaman” to sue the company directly (bypassing workmen’s comp).
Go to Houma, La., and the buses carry billboards for ambulance chasing lawyers advertising for “Jones Act cases”