Thousands of fishermen and business owners in a multi-billion-dollar legal battle with BP over the Gulf of Mexico oil spill have won the right to sue for punitive damages, in a fresh defeat for the oil major.
More than 100,000 individuals, companies and authorities have filed cases claiming they suffered economic loss as a result of the leak last year. A judge, Carl Barbier, is considering 500 cases, many of them class actions, against BP and its main co-defendants, including Transocean, the rig owner.
In a key ruling, Judge Barbier has now said that the plaintiffs are allowed to make their cases under maritime law for punitive damages. BP and the other companies had argued that a different law prevented complainants pursuing them in this way.
Punitive damages go beyond pure compensation for economic loss – they are penalties intended to punish an offender and deter repeat conduct. However, extreme negligence would have to be proven, which is strongly denied by BP and the other defendants.
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