SE Texas Record

Monday, December 9, 2019

Transocean insurers want court to stop BP's claim for more coverage

By John Suayan, Galveston Bureau | Jun 3, 2010

GALVESTON � Insurers for Transocean are asking a federal court to issue a declaratory judgment against BP after the company reportedly sought a claim to cover the April 20 Deepwater Horizon explosion.

In a lawsuit filed May 21 in the Houston Division of the Southern District of Texas, the insurers say BP submitted a notice of claim to the Transocean Excess Insurers via e-mail. But the plaintiffs claim BP is not eligible for more coverage since the pollution is of BP's making.

"The Transocean Excess Insurers are seeking a judgment declaring that they have no additional-insured obligation to BP with respect to pollution claims against BP for oil emanating from BP's well," the original petition states.

"Because liabilities BP faces for pollution emanating from BP's well are from below the surface and from BP's well, those liabilities are not within the scope of the additional-insured protection."

The blast off the Louisiana coast which killed 11 workers continues to spill more than 200,000 gallons of oil daily into the Gulf of Mexico.

The Deepwater Horizon was performing drilling activities at the time of the incident in accordance to a contract between the defendant and Transocean. The insurance policies in question were in effect from May 1, 2009, to May 1, 2010.

Phelps Dunbar LLP is representing the insurance companies, and the case has been assigned to U.S. District Court Judge Melinda Harmon.

Case No. 4-10-cv-01823

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