Bermuda Insurer Backs Mermaid Deposit
Australia’s Mermaid Marine, accused of failing to assist oil workers left floundering in open seas during a hurricane off the coast of Mexico, has put almost $22 million backed by a Bermuda shipping insurer in a trust account with a US court.
The deposit of the sum, backed entirely by a Standard Steamship Owners’ Protection and Indemnity Association of Bermuda, reflects Mermaid Marine’s efforts to cap its liability for damages arising from the tragedy in early September.
At the same time as it deposited the sum, Mermaid Marine told the US District Court in Houston that it may face more claims for damages as a result of the incident.
Fremantle-based Mermaid Marine — which has operations around the world — is one of three companies accused of actions ”tantamount to murder at sea” in a US lawsuit filed by the family of one of four oil workers who died last year during a violent storm in the Gulf of Mexico.
Mermaid Marine, which says it is Australia’s biggest provider of marine-based services to the oil and gas industry, has the slogan ”Safety is our Priority”.
Ten men were forced to abandon a mobile platform in the Gulf of Mexico during Hurricane Nate in early September.
Four of the oil workers died as their liferaft drifted for more than 200 kilometres in mountainous seas. Some of the six survivors and families of the dead are suing Mermaid Marine and its contractor, Geokinetics of Texas, for damages running to more than $33 million.
The oil workers claim Mermaid Marine’s ship, “Mermaid Vigilance” [pictured at top], turned and ran for shore instead of standing by and monitoring the position of the oil workers as they floated in open seas. But in documents filed last Thursday [Mar. 14] with the court in Houston, Mermaid Marine again denied liability for the debacle.
It claims the extreme weather and huge seas barred any rescue attempt ”because any attempt to turn the vessel to attempt to render assistance would have placed the vessel, her 17 crew and her 20 passengers in extreme peril”.
Mermaid Marine deposited the sum last week as it asked the US District Court to exonerate it entirely or to cap its liability under admiralty law.
The $22 million represents the value of the “Mermaid Vigilance” and her cargo at the time of the incident.
But the company told the court that it expects more legal claims ”by other parties for property damages and other losses as a result of the incident”.
