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Recent decision on the BP Gulf of Mexico spill

The recent New Orleans court decision on whether BP was negligent for the Deepwater Horizon blowout that killed 11 workers and led to 4.2 millions of barrels of oil spilling into the Gulf of Mexico in September 2014 holds some interesting lessons for business. The court found that not only was BP not just negligent but grossly negligent.

The judge apportioned 67% of the blame for the disaster to BP. The bigger bar of ‘gross negligence’ will have a much higher financial impact on BP as the cost of the penalty under the Clean Water Act will rise from $1,100 a barrel to $4,300 a barrel for gross negligence of wilful misconduct.

 

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