By Chevazz G. Brown and Tré Fischer

The United States Judicial Panel on Multidistrict Litigation (known informally as the MDL Panel) has issued its decision to consolidate the hundreds of lawsuits filed in the wake of the largest oil disaster in U.S. history—the Deepwater Horizon oil spill. Finding that the Eastern District of Louisiana (New Orleans) is best suited to handle the lawsuits, the MDL Panel determined that the matters would be heard before U.S. District Judge Carl J. Barbier. In a separate order, the MDL Panel also ordered that all civil securities litigation would be heard by U.S. District Judge Keith P. Ellison of the Southern District of Texas (Houston).

Created in 1968, the MDL Panel meets periodically to determine whether civil lawsuits pending in different federal districts share such common questions of fact that consolidation of the lawsuits in a single federal court best promotes efficiency. The designated court is responsible for overseeing the pretrial process and makes critical decisions, such as which substantive law to apply.

The Deepwater Horizon disaster has spawned a vast and diverse group of claims ranging from class action personal-injury and wrongful death claims to suits involving loss of business revenue, environmental damage, and investor claims. The lawsuits are dispersed across more than seven jurisdictions, including courts in Texas, Louisiana, Mississippi, Alabama, and Florida. BP advocated for Houston, with the majority of plaintiffs and the United States advocating for New Orleans.

In choosing New Orleans, the MDL Panel reasoned that “if there is a geographic and psychological ‘center of gravity’ in this docket, then [New Orleans] is closest to it.” And close it is—New Orleans is about 130 miles from the Deepwater Horizon oil spill site. Many of the groups substantially affected by the disaster reside in and around New Orleans. The MDL Panel also considered the experience of Judge Barbier, who, it noted, has considerable experience with multi-district litigation and who has already presided over Deepwater Horizon litigation and survived an attempt by some defendants to have him removed.

Congress also has responded to the disaster with some 80 bills related to offshore drilling reform. Ten of those bills are ready for votes before Congress and focus mainly on research that would prevent future oil spill disasters and improve preparedness in the event of an accident.

Jackson Walker is in prime position to assist clients in virtually every kind of dispute. While based in Texas, JW has a global reach. Our attorneys have substantial experience representing diverse energy clients in Texas, Louisiana, and along the Gulf coast region. In particular, many JW energy attorneys and litigators have strong ties to Louisiana and maintain an active practice in New Orleans and throughout Louisiana.

If you have any questions or would like further information on this e-Alert, please contact Tré Fischer at 713.752.4530 or tfischer@jw.com or Chevazz G. Brown at 713.752.4548 or cgbrown@jw.com or any of our Jackson Walker Energy attorneys for additional assistance.