In August, Gersowitz Libo & Korek reported about The Oil Pollution Act of 1990, which could cap BP’s liability at $75 million. This statute limits each oil spill incident from an offshore facility to $75 million in addition to the cost of cleanup. Exceptions to this Act will only be made for instances of gross negligence, willful misconduct, or violations of applicable federal safety, construction or operating regulations.
According to the Associated Press, BP confirmed earlier this week that they will waive the cap, but only for certain claims. One of the lead attorneys, Ervin Gonzalez, said he was satisfied that the filing by BP will definitely waive the cap, claiming. They cannot get around that language.
BP stresses that waiving the cap is in no way admitting to gross negligence stemming from the Deepwater Horizon oil rig explosion and massive spill into the Gulf in April of this year. Gonzalez believes that BP has included this wording in an effort to avoid future punitive damages suits.
Trials stemming from the lawsuits filed against BP for the Deepwater Horizon disaster may begin as soon as June 2011.