Transocean petitions to liability: what does this mean for victims?

On April 20, the Transocean Deepwater Horizon drilling rig exploded in the Gulf in Mexico.  Seventeen offshore workers were injured and 11 were killed.

Under Jones Act Law those families are entitled to compensation for the loss of their loved ones.

Today, Transocean Ltd.  is filing a petition to limit its liability for the accident to less than $27 million dollars.   This may limit liability claims for those families who have lost a loved one to the Deepwater Horizon oil rig explosion.  This action will shorten the amount of time that a family has to make a claim perhaps to as little as six months.  Under federal maritime law, the timeframe to file a lawsuit is three years.  This action could force families to file their lawsuits before they have dealt with the emotional impact of the explosion and before the accident has been fully investigated. 

The petition will certainly slow the legal process down as a judge may put a stay on all pending litigation and all lawsuits would have to be refilled in federal court. 

The petition is being filed under the Limitation of Liability Act of 1851.  This act states that a vessel owner is liable only for the post-accident value of the vessel and cargo as long as the owner can show that they had no knowledge of negligence in the accident.

It is unknown if BP and Halliburton will also seek to limit their liability.