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Insurer Has Duty To Defend Even Though Insured Did Not Immediately Notify Insurer Of Underlying Lawsuit

The United States sued Company A for discharging pollutants from an offshore platform in the Gulf of Mexico in February 2013 after giving notice to Company A of the alleged violations in March 2012.  Company A failed to give notice to its insurer of the potential violations until September 2013 despite an insurance policy that required “immediate notice” of any occurrence that gave...

BSEE Proposes New Rules For Offshore Operations

Earlier today, the U.S. Department of the Interior, through the Bureau of Safety and Environmental Enforcement (BSEE), announced new proposed regulations for offshore oil and gas operations.  The proposed regulations focus on blowout prevention requirements and well design, well control, casing, cementing, real-time well monitoring, and subsea containment.  Specifically, the proposed...

Offshore Platform Owner Wins Summary Judgment Against Services Contractor’s Injured Employee

An owner and operator of an offshore platform hired a services contractor to diagnose and repair a malfunctioning vertical caisson pump used to pump seawater up to the platform.  The services contractor’s employee was injured in performing the work and brought suit against the operator.  Last week, the U.S. District Court for the Eastern District of Louisiana granted summary...

Mother’s Case Challenging Son’s Settlement Following Workplace Injury Not Barred By Res Judicata

In a case evaluating whether a seaman’s second personal injury suit against a barge owner was precluded on the grounds of res judicata, the U.S. District Court for the Eastern District of Louisiana held that the suit was not precluded where the plaintiff in the second suit attacked the validity of the settlement in the first suit.  The court explained that such attacks create an issue...

BOEM Increases OPA Liability Limit To $133.65 Million

The Bureau of Ocean Energy Management issued a final rule yesterday that increases the limit of liability for damages caused by any Responsible Party for an offshore facility from which oil is discharged, or which poses a substantial threat of an oil discharge, as described in the Oil Pollution Act of 1990, from $75 million to $133.65 million.  The agency announced that the rule...

Preventive Maintenance Steps To Maximize Preparedness For Litigation And Crisis Management

As the year winds down, there is no better time to make sure that your company is as prepared as possible for future litigation and crisis management.  Below is a quick checklist of 10 preventive maintenance steps you can take to maximize your preparedness.  When conducting any of these steps, be cognizant of protecting privilege.  Document the scope of reviews and clarify the purpose...

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