By Alison Sider
Cameron International Corp. (CAM) won't face punitive damages
stemming from the 2010 Deepwater Horizon explosion, a federal judge
in New Orleans ruled Wednesday.
Cameron manufactured the blowout preventer that was connected to
the Deepwater Horizon rig when it exploded in 2010, leading to 11
deaths and the worst offshore oil spill in U.S. history. The
blowout preventer, a tall stack of valves that is intended to seal
off an out of control well, failed to stop the explosion.
Judge Carl Barbier, a federal judge in the Eastern District of
New Orleans, granted Cameron's motion for judgment denying the
plaintiffs' claims for punitive damages against the company. The
civil trial, which began last month, wraps together hundreds of
civil claims and cross-claims made against BP PLC (BP, BP.LN),
Transocean Ltd. (RIGN.VX, RIG), Halliburton Co. (HAL), and other
companies and businesses, the Gulf Coast states, and the Justice
Department. In the first phase, Judge Barbier will determine the
degree of culpability each company has for the accident.
In 2011, Cameron paid BP $250 million to settle most of the
legal claims arising from the spill. BP agreed to indemnify Cameron
against all claims for compensatory damages, but the agreement
didn't cover fines, penalties or punitive damages.
Also Wednesday, Judge Barbier dismissed M-I Swaco, a
drilling-fluid provider that is now a unit of Schlumberger Ltd.
(SLB), from the lawsuit.
"We are very pleased with the court's complete dismissal of M-I
Swaco from the Deepwater Horizon lawsuit and its finding that M-I
had no fault whatsoever in connection with the events that led to
the blowout and explosion," said Stephen Harris, a spokesman for
Schlumberger. "While we are thankful to put this behind us, our
thoughts today are with those whose lives were forever altered,
including the two M-I Swaco employees who died and the three who
survived."
Write to Alison Sider at alison.sider@dowjones.com
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