Mediation Engaged to Respond to BP Oil Spill

June 14th, 2010 - Erin Johnston, MSW, LCSW

Oil Spill MediationLate in May, while hope remained that the “Top Kill” effort to stem the leak was working, BP announced that it would be appointing a mediator to facilitate claim resolution.

BP announced that it will appoint an Independent Mediator to review and assist in the claims process for the spill associated with the exploratory well that was being drilled by the Transocean Deepwater Horizon in Mississippi Canyon, Block 252.

Although mediation can, without a doubt, be helpful in the resolution of claims related to damages from the oil spill, it is imperative that the tenants of mediation be upheld.

  • Mediator Neutrality – By appointing the “independent mediator”, is not BP exerting primary and initial influence on the mediator? Parties in conflict who choose mediation ideally have equal say in who is the mediation provider. This is one of the basic means of ensuring that the mediator is truly a neutral participant.
  • Power Equity – It is hard to imagine a fisherman, small restaurateur, the widow of a rig-worker, beach-front property owner, or even coastal town government having equal power in a dispute with the multi-national and heavily moneyed BP. Most losses attributed to the spill, while huge to the claimant, are dwarfed by the annual profits of BP (which BP reported to shareholders as $16.5 billion in 2009). For mediation to be successful, this inherent inequity must be addressed in the design of the BP mediation program.
  • Voluntary – Participation in mediation is voluntary. Generally anything that can be litigated can be mediated – resulting in a resolution that is more satisfactory to both parties. However, BP is in a position of addressing thousands of claims from people who have experienced a loss or hurt from what they see as a result of decisions or actions of BP. It is likely that claimants will see themselves as “victims” of BP. Filing a claim and seeking a settlement through mediation as opposed to traditional litigation may not be the claimants first choice. Participants may find themselves in mediation without fully engaging in the process and/or voluntarily participating.

Although these are significant obstacles to mediation, BP can create a “Mediation Program” to address the damage claims resulting from the oil spill that results in claims being resolved in a “win-win” manner while still assuring BP’s continued viability in the field and the region.

Related Posts:

Tags: , , , , , , , , , , , , , , , , ,

Comments are closed.