Boston, MA 09/08/2014 (wallstreetpr) – According to reports, Transocean LTD (NYSE:RIG) expects to get a positive result in Macondo case. The company announced recently that it received a U.S. Court decision on phase one of litigation which was related to Macondo incident which occurred in April 20, 2010. Below are the most important points of the court’s decision in respect of Macondo case-
Liability For Punitive Damages:
According to U.S court, Transocean LTD (NYSE:RIG) was not completely negligent; this means that it was not responsible for damages that occurred in that incident.
BP plc (ADR) (NYSE:BP) and RIG were partner during that incident. After the collision, BP decided to indemnify RIG in regard with compensation for all the damages. According to court, all the damages that BP indemnified RIG for were enforceable. Transocean LTD (NYSE:RIG) couldn’t ignore those expenses at any condition.
Claims Of BP Against Transocean:
The court found after analyzing the case closely that all the charges which BP claimed against RIG to release its claim were valid; hence, it would have to pay all the charges. As per the reports, BP plc (ADR) (NYSE:BP) assigned all the claims to Plaintiffs’ Steering Committee in order to stop PSC from pursuing the claims on its own.
Macondo incident was one of the worst incidents that took place during that time. It did not only result in operational loss, but also financial loss for all the three companies. After the recent decision given by U.S district court, the financial risk of RIG due to below-surface discharge of oil at Macondo has become negligible or minimum. Now the only financial risk that Transocean LTD (NYSE:RIG) carries is for above-surface discharge of pollutants during the initial two days of oil-pill. The management of RIG believes that no such discharge resulted into any harmful effect. The entire team of RIG seems pretty happy and determined after the court’s decision.