An advisory on the proposed SPILL Act has been issued by Kelley Drye.
WASHINGTON – July 13, 2010 – On July 1, 2010, the U.S. House of Representatives passed the H.R. 5503, the “Securing Protections for the Injured from Limitations on Liability Act” or SPILL Act, by voice vote. The bill has now moved to the Senate where it has been referred to the Commerce, Science, and Transportation Committee. A markup of this bill in the Commerce Committee is scheduled for Wednesday, July 21, 2010. Actions of this sort by this committee have a history of moving quickly through the Senate, often passed by unanimous consent.
While, as the name suggests, the primary motivator of the bill was the explosion of the Deepwater Horizon oil rig (and subsequent oil spill), which cost the life of eleven workers and injured seventeen others, this measure affects a much broader range of maritime interests. In the main, the bill modifies the liability schemes of the Jones Act, 46 U.S.C. §§ 30101-30106), the Death on the High Seas Act (46 U.S.C. §§ 30301-30308), and the Limitation of Liability Act. 46 U.S.C. §§ 30501-30512). The SPILL Act also contains provisions specific to maritime injuries or deaths occurring in connection with “incidents” under the Oil Pollution Act of 1990 (33 U.S.C. Chapt. 40), such as the Deepwater Horizon spill. Briefly, this provision prevents the sale or lease of “significant property” during bankruptcy unless there are assets sufficient to satisfy such claims. The effective date of the law is April 20, 2010, so as to bring the Gulf oil disaster within the new terms of the law.
Should the Senate adopt this bill, changes to the liability provisions under maritime law will impact fishermen, tug and tow operators, marine shippers, passenger vessel companies, and others covered by the Jones Act and the Death on the High Seas Act. These changes, discussed below, have the impact of generally broadening the types and amounts of damages plaintiffs may collect for maritime injuries and deaths. As such, this legislation could increase the costs, or even threaten the continued availability, of protection and indemnity insurance and otherwise threaten the viability of small marine operations, such as those in the fishing, tug and tow, and other fields.
Read the complete advisory from Kelley Drye.