Law360 Guest Article: Deepwater Horizon is Not Over Yet

09/17/2013


BP will have to wait a little longer to find out whether it is entitled to as much as $750 million of “additional insured,” or AI, coverage under Transocean’s policies for BP’s subsurface pollution liability arising out of the Deepwater Horizon incident in 2010.

The Fifth Circuit Court of Appeals recently withdrew its prior decision reversing Judge Barbier’s initial denial of AI coverage for BP and has certified two issues to the Texas Supreme Court. In re Deepwater Horizon (5th Cir. Aug. 29, 2013). The Texas Supreme Court will consider, first, whether in light of Evanston Ins. Co. v. ATOFINA Petrochems. Inc., 256 S.W.3d 660 (Tex. 2008), BP’s AI status under Transocean’s policies should be determined solely by reference to the policies’ terms or whether such coverage will also depend upon the terms of Transocean’s indemnity obligations under BP’s drilling contract.

Excerpted from Law360, September 17, 2013. To view full article, click here (subscription required).

Email Disclaimer