Law360, New York (September 15, 2014, 10:31 AM EDT) -- One of the Phase One rulings in the Deepwater Horizon oil spill litigation has already received significant public comment. Applying Fifth Circuit maritime law, U.S. District Judge Carl J. Barbier concluded that: (1) the reckless conduct of BP PLC well managers supported punitive damage liability, but (2) that BP, as their corporate employer, is not liable for any such punitive damages. The judge conceded that the second, respondeat superior aspect of this conclusion was a close question under the Fifth Circuit decision in In re P&E Boat Rentals Inc. Furthermore, the P&E Rentals decision itself acknowledges a split in the circuits on the issue, and also quotes a (then) recent U.S. Supreme Court decision supporting imposition of punitive damages on corporations for the reckless conduct of employees....
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