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US House approves bill increasing compensation for oil spill victims

By Sarah Miley

[JURIST] The US House of Representatives [official website] on Thursday approved a bill [HR 5503 materials] that would increase compensation for injured workers and victims' families that have filed claims against BP as a result of the recent Deepwater Horizon oil spill [BBC backgrounder; JURIST news archive] in the Gulf of Mexico. The bill marks the first piece of legislation passed by the House in response to the oil spill. The Securing Protections for the Injured from Limitations on Liability (SPILL) Act [text, PDF] would change several laws applying to legal liability on the high seas. The jurisdiction of the 1920 Death on the High Seas Act [text], which allows families of decedents to bring a civil action in federal court, would be extended from three to 12 miles from the US coastline. The amendment would also allow the families of workers who died in the BP oil rig explosion to file a claim for both compensatory and punitive damages, including pain and suffering and loss of companionship. SPILL also amends the 1920 Jones Act [text] to allow recovery for loss of care, comfort and companionship by a individual injured in the course of employment at sea. Representative John Conyers (D-MI) [official website] sponsored the bill, calling the previous legislation "ancient" and "outdated." Some Republicans argued that the bill was too broad because it covers all companies operating on the high seas but did not act to block its passage. Representatives from both parties did agree on at least one issue—that companies directly responsible for the Gulf oil spill should not be allowed to limit damages under outdated laws. The House passed the bill on a voice vote, and was therefore not recorded. The bill will now go before the US Senate.

Calls for criminal and civil actions have been mounting against BP as evidence of the oil company's lack of proper compliance with regulations has come out. Two lawsuits were recently filed [JURIST report] against BP alleging violations of the Rackteer Influenced Corrupt Organizations (RICO) [18 USC § 1961 et seq.]. The first lawsuit, a class action filed on behalf of US residents affected by the oil spill, was filed last week and alleges [complaint, PDF] that BP engaged in a scheme to secure profits by deceiving the public. The second suit, filed Monday, alleges [complaint, PDF] that BP has been involved in racketeering and corruption related to the BP claims payment process. Earlier this month, US Attorney General Eric Holder [official website] announced that the Department of Justice (DOJ) [official website] is reviewing whether any criminal or civil laws were violated [JURIST report] by BP resulting in the oil spill. Holder cited several statutes being examined by government lawyers including the Clean Water Act and the Oil Pollution Act of 1990 [materials]. Last month, DC-based consumer advocacy organization Food and Water Watch (FWW) [advocacy website] filed suit [JURIST report] in a US district court against the US Department of Interior (DOI) and the Minerals Management Service (MMS) [official websites] for an injunction to halt drilling at the BP Atlantis Facility [corporate website], another BP Gulf of Mexico site.

Full post as published by JURIST - The Paper Chase on July 02, 2010 (boomark / email).