How to punish corporations - bp case

HOW TO PUNISH CORPORATIONS? BP CASE

FUNDAMENTALS OF BUSINESS LAW
EDUARDO SANCHEZ: 314136 MARIA JOSE MATILLA: 314042 FEBRUARY 24TH, 2011

CONTENTS
I. II. III. IV. 1) 2) 3) 4) V. VI. INTRODUCTION ..................................................................................................................... 3 BP CASE................................................................................................................................. 3 DISCUSSION ....................................................................................................................... 4 COMPARING LAW SYSTEMS .............................................................................................. 5 EUROPEAN UNION............................................................................................................ 7 GERMANY .......................................................................................................................... 7 UNITED STATES.................................................................................................................. 8 UNITED KINGDOM............................................................................................................. 9 CONCLUSIONS ....................................................................................................................... 9 REFERENCES .................................................................................................................... 11

SANCHEZ /MATILLA

HOW TO PUNISH CORPORATIONS? THE BP CASE

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I.

INTRODUCTION

In thefollowing we will take a look at the Oil Spill Bp case and all de legal systems involved in this issue: laws in the European Union, Germany, United States and United Kingdom will be taken into account. As well we will discuss about how the case has to be managed by the respective entities and in the conclusions addresses the need for an organism to control corporations.

II.

BP CASE

On 20April 2010, the semi-submersible exploratory offshore drilling rig Deepwater Horizon exploded after a blowout; it sank two days later, killing 11 people. This blowout in the Macondo Prospect field in the Gulf of Mexico resulted in a partially capped oil well one mile below the surface of the water. Experts estimate the gusher to be flowing at 35,000 to 60,000 barrels per day of oil. The exact flowrate is uncertain due to the difficulty of installing measurement devices at that depth and is a matter of ongoing debate. The resulting oil slick covers at least 2,500 square miles (6,500 km2), fluctuating from day to day depending on weather conditions. It threatens the coasts of Louisiana, Mississippi, Alabama, Texas, and Florida (CNN. Retrieved on 15.06.2010). The drilling rig was owned andoperated by Transocean Ltd on behalf of BP, which is the majority owner of the Macondo oil field. At the time of the explosion, there were 126 crew people on board; seven were employees of BP and 79 of Transocean. There were also employees of various other companies involved in the drilling operation, including Anadarko, Halliburton and M-I Swaco (Los Angeles Times. Retrieved 01.05.2010). The U.S.Government has named BP the responsible party, and officials have committed to hold the company accountable for all cleanup costs and other damage. BP has stated that it would harness all of its resources to battle the oil spill, spending $7 million a day with its partners to try to contain the disaster. In comparison, BP's 1st quarter profits for 2010 were approximately $61 million per day. BP hasagreed to create a $20 billion spill response fund administered by Kenneth Feinberg. The amount of this fund is not a cap or a floor on BP's liabilities. BP will pay $3 billion in third quarter of 2010 and $2 billion in fourth quarter into the fund followed by a payment of $1.25 billion per quarter until it reaches $20 billion. In the interim, BP posts its US assets worth $20 billion as bond. For...