In Re: Deepwater Horizon

This case stemmed from the explosion and sinking of Transocean's Deepwater Horizon in April 2010. At issue were the obligations of Transocean's primary and excess-liability insurers to cover BP's pollution-related liabilities deriving from the ensuing oil spill in the Gulf of Mexico. Because the court, applying Texas law, found that the umbrella policies between the Insurers and Transocean did not impose any relevant limitation upon the extent to which BP was an additional insured, and because the additional insured provision in the Drilling Contract was separate from and additional to the indemnity provisions therein, the court found BP was entitled to coverage under each of Transocean's policies as an additional insured as a matter of law. The court reversed the judgment of the district court and remanded the case. View "In Re: Deepwater Horizon" on Justia Law