BP Can't Collect From Transocean Insurers, 5th Circ. Hears

Law360, Washington (July 13, 2012, 5:48 PM ET) -- Transocean Ltd. and several of its insurers urged the Fifth Circuit on Wednesday to uphold a lower-court decision that they don't have to cover BP PLC's costs from the Deepwater Horizon oil spill, noting a reversal could make Transocean uninsurable.

Under the drilling contract between the companies, Transocean was liable for above-surface pollution stemming from the Macondo well, while BP assumed liability for subsurface pollution that occurred during the 2010 spill. That agreement, Transocean contends, negates BP's ability to collect compensation from Ranger Insurance Ltd. and...
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