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Brendan DeMelle

Brendan DeMelle

Posted: June 24, 2010 12:54 AM

Gulf Coast Attorneys File RICO Class Action Lawsuits Against BP

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Gulf Coast law firms Levin Papantonio, Eastland Law and others have begun filing a series of civil RICO actions in Florida, Mississippi, Louisiana and Alabama to hold BP accountable for the false assurances it gave the American people that it could handle a worst-case scenario deepwater oil spill. The suits allege that BP committed mail fraud, wire fraud and potentially other RICO predicate act violations when the company sought permits from the federal government for deepwater offshore drilling, knowing that it did not possess the technical expertise or equipment necessary to respond to an emergency such as the ongoing Deepwater disaster.

This is the only RICO claim out of the more than 200 lawsuits filed so far against BP - and that doesn't even count claims against Transocean, Halliburton and other associated defendants. All the other legal cases filed so far against BP are based on negligence associated with the Deepwater Horizon oil rig explosion, violations of various environmental statutes, and other legal angles.

By choosing the RICO approach, the Gulf Coast attorneys hope to provide an avenue for all Americans impacted by the disaster to stand up to the oil companies and prosecute them in civil court for their unlawful conduct.

The RICO suits allege that BP and its CEO Tony Hayward engaged in a pattern of fraudulent misrepresentations when the company asserted in its regional oil spill and exploration oil spill emergency response plans that it had the equipment and technology to respond to a deepwater accident. BP claimed in some of the plans that it had the capacity and expertise to respond to a spill of as much as 250,000 barrels per day.

"BP was more interested in making billions of dollars from offshore drilling and cutting corners on oil spill response safeguards at the expense of protecting the Gulf ecosystem, the public and our plaintiffs in the Gulf region from environmental and economic disaster," according to Hiram Eastland, principal attorney with Eastland Law Firm in Greenwood, Mississippi.

Eastland told me today:

"As we have heard from Congressional testimony in front of Senator Boxer's and Representative Markey's committees over the past few weeks, there is in fact a lot of evidence already presented about BP's illegal conduct. This is exactly the type of conduct that RICO provides a measure of accountability and justice for, and we intend to see to it that such a pattern of unlawful conduct is dealt with under the full due process of the law."

The Justice Department launched civil and criminal investigations into BP's false statements about their oil spill response plans on June 1st. But the lawsuits brought by Levin Papantonio and the other law firms are civil claims based on the RICO statute, which enables a private individual harmed by the actions of a criminal enterprise to file a civil suit and, if successful, collect treble damages from the defendant.

Enacted into law in 1970, the Racketeer Influenced and Corrupt Organizations Act (RICO) was initially used by the government to prosecute Mafia kingpins. But it is an appropriate legal maneuver in the BP case as well, as Eastland explained to me:

"The civil RICO action that we recently filed in Florida, and the RICO actions we plan to file in Mississippi, Louisiana and Alabama, are solidly based on unlawful conduct that is already apparent from testimony and other documents that have already played out on the national stage in the last several weeks."


"BP's pattern of making false submissions to the government to get the permits that allowed it to make billions from offshore drilling constitutes a pattern of mail fraud, wire fraud and other unlawful RICO predicate act conduct that is tailor made for this RICO class action."

The coalition of law firms bringing the suits anticipates uncovering further evidence of BP's shenanigans through the discovery process, and will likely add additional claims - and defendants - as a result.

According to Eastland:

"These claims are just the tip of the iceberg, and we fully anticipate adding additional claims and defendants as this civil litigation progresses. The public deserves to know the whole truth."


"It's not just the people of the South, but people from all over the country who have come to love the Gulf of Mexico and our Gulf shores just as much as we do. They love our pristine seashores, our pelicans and sea gulls and sandpipers, our dolphins and our seafood and the whole way of life we enjoy on the Gulf Coast. And they passionately believe as we do that it's past time to get action, if not get medieval on BP's unlawful conduct and what they have done to our shared waters and our Coast."

Ongoing investigations, as well as the discovery process, could turn up new evidence of wrongdoing, not just on BP's part, but across the entire offshore drilling industry. Given the revelations last week by Rep. Ed Markey's committee that the five major offshore drilling companies had each submitted nearly identical response plan documents, there are hefty implications for all the major oil companies engaged in offshore drilling, some or all of which might be added as defendants in these RICO suits.

Eastland elaborates:

"There are a number of issues in addition to the textbook mail and wire fraud RICO predicate acts involved in our civil complaints that fully warrant further investigation and potential additional claims. Just the fact that other big oil companies admitted before Congress that they submitted essentially identical emergency response plans to secure offshore drilling permits - plans these companies now acknowledge they were never capable of carrying out - raises serious questions as to whether there was an overall conspiracy by Big Oil. All of these companies made such representations and assurances in order to make billions on offshore drilling while ignoring the need for actual safeguards against environmental and economic catastrophe."

Under the racketeering statute, a defendant may be guilty of a RICO conspiracy by merely agreeing to the "objective" of the conspiracy. That raises very serious questions about the fate of the entire industry, since all the major oil companies made the same misrepresentations in their response plans about their emergency capabilities. They led the public to believe they had it all covered, but as we see in the blackened Gulf today, not so much.

Eastland explains:

"They knew they were lying, yet they would rather go make the profits on dangerous offshore drilling and leave the American public at risk. They never should have been out there in the first place since they knew they couldn't respond to such a disaster. The exact cause of the disaster is irrelevant in this case. It wouldn't matter if it had been a meteorite that hit the rig. These companies falsely assured the public that they had a plan to handle such a spill, even though they knew all along they didn't. That's plainly illegal."


"There's been a lot of people prodding the administration about the need to talk tough to the oil companies. But we don't need tough talk to address their egregious behavior. We already have tough laws on the books that address such selfish, greedy, unlawful conduct."

"Big Oil's big lies are about to come home to roost," Eastland predicts.

The initial RICO case filed in Florida, Rinke v. BP, is available here [PDF 1.6 MB].

 

Follow Brendan DeMelle on Twitter: www.twitter.com/bdemelle

Gulf Coast law firms Levin Papantonio, Eastland Law and others have begun filing a series of civil RICO actions in Florida, Mississippi, Louisiana and Alabama to hold BP accoun...
Gulf Coast law firms Levin Papantonio, Eastland Law and others have begun filing a series of civil RICO actions in Florida, Mississippi, Louisiana and Alabama to hold BP accoun...
 
 
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HUFFPOST SUPER USER
BannedNBoston
Is hemp legal yet?
02:47 PM on 06/27/2010
BP didnt sell 20 billion of assets for the fund
they took a loan out

Jyndal evacuate Venice LA!!!
http://www.youtube.com/watch?v=jkYJDI8pK9Y&feature=player_embedded
HUFFPOST SUPER USER
Longtimeliberal
01:13 PM on 06/27/2010
These guys have gone after BP for some time and rightly so. Now we know that these guys (BP) was a joke all the time about safety. We are now paying the price for our own greed for oil.
HUFFPOST SUPER USER
erdoc53
10:25 AM on 06/27/2010
I always referred to them as The Big Oil Mafia
outnow
Ban the bomb
10:37 AM on 06/26/2010
I have been following Papantonio and RFK, Jr. for some time. This lawsuit may be the single most important lawsuit since the Magna Carte was signed by King John.

I believe that we need to trust the jury system in this country. Government regulators can be bought off as can politicians. Check out what MMS did - they were snorting coke and having sex with the industry whores. Money passed hands, too. The Obama administration, including Salazar himself, says that they couldn't even begin to clean up this mess so they granted permission to drill on April 06, 2009 with a rubber stamp letter from the MMS. This letter from MMS is available on the internet. It warns of methane gas being close to the surface but waives any testing for safety.

Juries regulate better than any government regulators ever could. Juries are the only power left for the People. Punitive damages send a message like no simple fine can. That's why the SCOTUS overturned the Exxon-Valez verdict - they wanted oil to have a free hand.

We the People must use the jury system and RICO to keep sending that message - business does not trump our safety nor our environment. Eventually, the SCOTUS will understand as it did when the Dred Scott decision went into the trash bin of history.
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HUFFPOST SUPER USER
rainkitty
11:38 PM on 06/26/2010
Great comment. Thanks outnow.
HUFFPOST SUPER USER
alvdh1
12:52 PM on 06/25/2010
Can Baby Bush and Oil on the Brain Cheney be included in the RICO Suits?
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Old Bat
Low BS Tolerance Zone
01:00 PM on 06/25/2010
Oh, please - oh, please - oh, please!
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HUFFPOST SUPER USER
NWBrunette
Blessed Girl
08:19 AM on 06/25/2010
Good.
12:29 AM on 06/25/2010
Being talked about is an explosion of a methane gas bubble near the spill site so large that it ruptures the ocean floor, explodes far above the water surface, causes wide death and destruction, with tsunamis following - not to mention that the existing well-head will be obliterated!
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HUFFPOST COMMUNITY MODERATOR
mrJJ
如果你不投票,你不能抱怨
12:12 AM on 06/25/2010
A Federal Criminal RICO case should be in the works... Tie em all together in a nice bow... start with middle and upper management at MMS... Someone will talk, A potential 20 years behind bars will do wonders to jog some memories. Halliburton,BP, Transocean etc. etc etc

http://www.politicolnews.com/bp-oil-lease-mms-head-resigns/

Mr Oynes was promoted to his last position by:

Randal Luthi: http://thinkprogress.org/interior-scandals-under-bush
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HUFFPOST SUPER USER
rougebaisers
06:25 PM on 06/24/2010
Can they start suing the he'll out of Cheney and all natural gas drilling criminals that are turning this country into a toxic wasteland?
This user has chosen to opt out of the Badges program
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03:46 PM on 06/24/2010
Kindra Arnesen Venice LA Local @ the Gulf Emergency Summit

http://www.youtube.com/watch?v=jkYJDI8pK9Y

Anyone seen this ?
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HUFFPOST SUPER USER
up2uamerica
04:56 PM on 06/24/2010
That is heartbreaking! What did we think would happen when we turned our lives over to greedy corporations. They exist only for the bottom line. The government is just as copable. WE MUST STAND UP!
03:33 PM on 06/24/2010
Eastland's quote about the need to use the tough laws we have on the books is well taken. We already have the legal mechanisms needed to bring BP to justice. And thanks to the law firms of Levin Papantonio, Eastland Law and others, we have the brilliant legal minds needed to bring this case forward. I hope this case goes all the way and BP is held FULLY accountable for the devastation their criminal recklessness is causing.
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HUFFPOST SUPER USER
right Alice
11:07 PM on 06/24/2010
Don't forget Erin Brockovich, herself, is on this case somehow!
03:10 PM on 06/24/2010
bp needs a PapAttack!!!!!
10:38 PM on 06/24/2010
Yeh!
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HUFFPOST SUPER USER
I Think
03:02 PM on 06/24/2010
If they had started building this or something like it a week after the start of the gusher, they could have it in place now.

Wake up folks, you are being had.
03:11 PM on 06/24/2010
Pap HAS been building a case since the beginning. Listen to his show "Ring Of Fire" or his interviews on Thom Hartmann.
02:31 PM on 06/24/2010
Yes, they do know they are lying. and to fix it, never mind the complicated mess and all the 'proven methods' you are attempting and put something like this together. http://www.youtube.com/watch?v=UP8iN4ZX1JU&feature=channel It would capture 100% of the gas and oil and take it to surface. Try something new.
On your mark . . . GO
Start now !”
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HUFFPOST SUPER USER
dlivtx