Risky Companies should Pay before they Get Paid

June 16th, 2010. By janem

How’s this idea: any company with a checkered past, and/or even the slightest possibility of a risk to the public, either from a drug such as Paxil that causes birth defects, a product such as asbestos or from an environmental hazard such as that caused by BP and Exxon, has to pay into some kind of trust before its top dogs and shareholders get paid.

Take BP, for instance–and who isn’t? Although BP shareholders are suing CEO Tony Hayward and board members alleging they underestimated the risk of an accident, and even though the spill reduced BP’s market value by 45 percent, and even after the spill—albeit in the early days– Hayward planned to pay more than $10 billion to shareholders this year.

Transocean, the company that owned and operated the oil rig that sunk into the Gulf of Mexico, quietly announced just five days after appearing before Congress to testify about its responsibility that it would shell out $1 billion in dividends to shareholders.

Transocean had insured the rig for $560 million and received $401 million from the insurance policy. Apparently the company made a few hundred million from the spill. Companies like Transocean shouldn’t be allowed to strike up these “backroom deals” with BP and its insurer. And not if Mr Obama and Congress have their way.

Either way, BP is stuck between a rock and a hard place: many UK investors are depending upon the payment as their income, but how much income is that? Obama said that BP had “moral and legal obligations” to Gulf Coast residents that may supercede its obligations to shareholders.

Prime Minister Stephen Harper would be wise to echo Obama’s words regarding a $58 million bank loan the Quebec government is considering for Jeffrey Mine Inc., that plans to exploit a massive new underground asbestos deposit. This company, like BP, has the potential of creating a massive amount of harm to countless people so it should be required to pay before the fact.

Of course it’s nearly impossible to estimate how much a company should pay but the respective governments could take a look at history: how much did Exxon pay for the cleanup and multiply that tenfold; how much did Libby mine pay to mesothelioma victims, how much did GlaxoSmithKline, the maker of Paxil, a drug that causes birth defects, make in profits last year …then tag on all their expected future profits…  BP and pharmaceutical companies have deep pockets. If it can’t afford to shell out that kind of money upfront, it shouldn’t be operating. As for Jeffrey Mine, the Quebec government should also be held accountable if it signs the loan.

BP Disaster and Why the Jones Act Needs to Change

June 16th, 2010. By Kristine B

As the oil continues to make its way to shore, countless families try to cope with the economic impact of the BP oil spill. Meanwhile scores of birds and other animals that rely on the sea are dying in unprecedented numbers. But, it may be the deaths of the 11 men on the oil rig platform that could have the biggest impact on future oil drilling. If officials change US Maritime Law—which they should, it’s only right—BP could be forced to pay dearly for its alleged (yes, I’m still using alleged here) role in the oil rig explosion and deaths of the workers.

This week, Pleading Ignorance looks at US Maritime Law and the Jones Act to better understand what happens when a worker suffers injury or death while working on or for a sea-faring vessel or operation.

So, why does US Maritime Law need changing? The current situation is that under maritime law, families of people who die while working at sea are only able to sue for economic damages caused by the death. This includes things such as loss of income, medical bills and so on. They can’t sue for punitive damages. 

The problem is that it’s the punitive damages that hit home with companies like BP—and drive much needed change. Economic damages, in comparison, are relatively small. Here’s an example: say an oil rig worker makes $60,000 a year at the time of his death and still has an approximate Read the rest of this entry »

BP Oil Spill Fix (#11) – Interim Containment Theory?

June 16th, 2010. By AbiK

I’m somehow thinking that the $20 billion that BP’s agreed to set up as an escrow fund to pay for claims as a result of the BP Oil Spill disaster won’t be enough. But I suppose it’s a start. Meanwhile reports yesterday indicated that government officials actually increased the estimates on how much oil has been spewing into the Gulf—now 50% higher than what was previously estimated. That’s a lot of oil folks…

So today we hear from Nate, who has a sort of interim containment solution to recommend. Here’s what he says…

Fix the BP Oil Spill Idea #11

“Burning the oil/gas mix at the bottom of the ocean by injecting O2 or (other gas) through the top via the q4000. Not sure if its been thought of yet, and it’s only a temp solution to oil reaching the surface till the relief wells finish. Pollution differences would have to be addressed but it would not allow oil to the surface and MOST pollution would be stuck a mile down in a tight location in theory.”

Got an idea you’d like to share? Let us know. Or email our editor at .

Thanks Nate!

CertainTeed Organic Shingle Settlement has Green Light

June 16th, 2010. By AbiK

Know what gets a lot of traffic at LawyersAndSettlements.com? Anything CertainTeed. CertainTeed lawsuits. CertainTeed settlements. CertainTeed-related comments about the weather. You name it, folks love clicking a CertainTeed link. So, in honor of all of you who’ve clicked away, here’s a CertainTeed story that might pay off for you: the CertainTeed Organic Shingle Settlement was approved at a court hearing last week.

[Little disclosure: as with the Lawn Mower settlement, LawyersAndSettlements.com has absolutely nothing to do with this—we’re not affiliated or connected in any way to the Settlement, not in bed with the law firms involved, not getting any cut of this…we’re just reporting it…]

So this Settlement is the result of a defective product lawsuit claiming that CertainTeed Organic Shingles that were manufactured between July 1, 1987 and December 31, 2005 were defective and failed to perform as promised when installed on homes and/or buildings in the US and Canada.

Now, don’t get all giddy too quickly. I’m telling you upfront, this Settlement—if you’re a part of it—will require a bit of homework on your part. So here we go…

The settlement applies to these folks only (aka, the “Class Members” —and yes, you need to be a member of this little club to receive any settlement monies) AND you also need to meet certain eligibility requirements once you pass the “test” to be considered a Class Member. So first, let’s look at who qualifies as a Class Member…

You are a CLASS MEMBER of the CertainTeed Organic Shingle Class Action Settlement if you:

1. Owned a home or other building in the US or Canada as of December 15, 2009 on which CertainTeed Organic Shingles were or had been installed;

OR

2. Owned such a home or building prior to December 15, 2009 but sold or Read the rest of this entry »

Is BP guilty of Organized Crime?

June 15th, 2010. By LucyC

An interesting lawsuit was filed this week, a RICO (Racketeer Influenced and Corrupt Organizations (RICO) Act of 1970) accusing BP of manipulating government agencies during guess who’s administration—yep—that would be George W’s—into relaxing the regulatory oversight of offshore drilling and oil operations in the US. And the resulting lack of oversight is what has led to the environmental disaster playing out in the Gulf of Mexico, its surrounding beaches and wetlands and the economies they collectively stimulate. Not to mention the death of 11 people who worked on the Deepwater Horizon oil rig.

According to an article on PNJ.com, the lawsuit states, “In the greedy interest of billions of dollars in offshore drilling profits, BP chose to misrepresent its capability to respond and prevent impact to the environment, the public and the plaintiffs, and concealed its incapacity to response.”

Now RICO came about as a means to fight organized crime networks including the mafia. I have to say I find the analogy interesting: in a time when the free market economy has come to stand for everything the West believes is sacred, at what point does the pursuit of bottom line interests cross the line, so to speak? And, if the officials elected to safeguard the systems that enable a free market economy to operate, (albeit in a somewhat utopian way), allow themselves to be manipulated as is implied Read the rest of this entry »