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dimbulb hosting a talk show on the American Family Network is now contending militantly that BP is responsible under law for only $75 million of liability for its Gulf oil spill and that therefore the President has indeed been extortionate in demanding more than this amount.

The knee-jerk right wing oafish host, as usual, does not know the law.

There is no liability cap problem. The cretin did no fact-checking. I have done my research:

The Oil Pollution Act of 1990 (OPA-90), does not pre-empt common law tort and maritime liability (non-statutory liability). Non-pre-emption is clearly stated in OPA-90.

Legislative history makes it clear that non-statutory damages are not pre-empted. OPA-90’s liability cap for offshore facilities is “$75 million PLUS total cost of removal and the “removal” definition is broadly inclusive. The $75 million cap is ONLY a cap on OPA-90 statutory damages, not on non-statutory tort damages, and even as to OPA statutory damages, it does not apply in any event where there is “gross negligence, willful misconduct, or violation of applicable Federal safety, construction, or operating regulation.” Information thus far developed indicates that there was plenty of all of those things going on in the Gulf spill. Much Gulf litigation will be non-statutory (punitive damages are attractive to claimants and not generally available under OPA-90).

BP did not go into conference with the President without having been fully advised of all these things by their attorneys. They know how much this disaster can cost them. I strongly suspect that the commitment to put up billions in escrow funds was made with plenty of legal advice and all potential consequences in mind. If BP really thought that they could get away with paying only $75 billion total for this mess, you can bet your sweet 42-gallon oil drum they would not have anted up that "slush fund," as the abominable Texas Congressman Joe Barton called it.

BP probably expects, correctly, that future tort claims can be whittled down by establishing a good record of their having paid timely claims to affected parties.

The public discussion of these matters is not enhanced by jerks on American Family Radio talking about things they know virtually nothing about.
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