Deepwater dispute goes to UK supreme Court

Lawyers for US Insurer Chubb will be in the UK’s Supreme Court today in a $1bn (£855m) wrangle over the Deepwater Horizon disaster.

Oil firm Hailburton has alleged the chairman of the conflict dispute resolution panel which heard a case between the energy firm, Chubb Bermuda Insurance, failed to disclose they had acted in behalf of the underwriter and another energy firm in other cases over the rig explosion and subsequent oil spill in 2010.

The explosion caused what is regarded as the biggest oil spill in the history of the industry and resulted in the loss of 11 workers.

Haliburton was deemed by US courts to be responsible for 3% of the costs of the disaster which were estimated to currently be in excess of £47bn.

Halliburton looked to lodge a claim for part of those losses via its insurance programme with Chubb. However, the claim was denied as Chubb disputed it had agreed to a liability amounting to the level of the claim.

The dispute went to arbitration and now Haliburton have applied to the UK Courts for a ruling claiming that the chairman of the dispute panel did not disclose his links with the insurers and energy firm Transocean in other legal cases around the disaster. Halliburton has alleged bias and called for his removal.

The English High Court and Court of Appeal have both ruled that his appointment to other cases did not amount to bias and was a “regular feature” of international arbitration.

The case is being heard in the UK because Haliburton’s insurance policy terms stipulated any arbitration had to take place in London.