33 U.S.C. § 2715: Subrogation

Summary

If a person or the Fund pays someone for cleanup costs or damages, the payer gets that person's legal right to go after anyone else who should really pay. If the payment is only a short-term or partial amount, the payer can only claim the same smaller part. Getting a partial payment does not stop the claimant from later seeking the full amount they are owed. If the Secretary asks, the Attorney General must sue to recover money the Fund paid and all related costs (for example, interest, administrative costs, and lawyers’ fees). Lawsuits can be brought against responsible parties, guarantors, or any person legally liable, including a responsible foreign government or other party for oil discharges from an offshore unit seaward of the exclusive economic zone. Agency heads may settle unreferred claims, but any settlement over $500,000 (not counting interest) needs the Attorney General’s prior written approval.

Title 33, §2715

Navigation and Navigable Waters, Source: USLM XML via OLRC

(a)In general

Any person, including the Fund, who pays compensation pursuant to this Act to any claimant for removal costs or damages shall be subrogated to all rights, claims, and causes of action that the claimant has under any other law.

(b)Interim damages

(1)In general

If a responsible party, a guarantor, or the Fund has made payment to a claimant for interim, short-term damages representing less than the full amount of damages to which the claimant ultimately may be entitled, subrogation under subsection (a) shall apply only with respect to the portion of the claim reflected in the paid interim claim.

(2)Final damages

Payment of such a claim shall not foreclose a claimant’s right to recovery of all damages to which the claimant otherwise is entitled under this Act or under any other law.

(c)Actions on behalf of Fund

At the request of the Secretary, the Attorney General shall commence an action on behalf of the Fund to recover any compensation paid by the Fund to any claimant pursuant to this Act, and all costs incurred by the Fund by reason of the claim, including interest (including prejudgment interest), administrative and adjudicative costs, and attorney’s fees. Such an action may be commenced against any responsible party or (subject to section 2716 of this title) guarantor, or against any other person who is liable, pursuant to any law, to the compensated claimant or to the Fund, for the cost or damages for which the compensation was paid. Such an action shall be commenced against the responsible foreign government or other responsible party to recover any removal costs or damages paid from the Fund as the result of the discharge, or substantial threat of discharge, of oil from a foreign offshore unit or other facility located seaward of the exclusive economic zone.

(d)Authority to settle

The head of any department or agency responsible for recovering amounts for which a person is liable under this subchapter may consider, compromise, and settle a claim for such amounts, including such costs paid from the Fund, if the claim has not been referred to the Attorney General. In any case in which the total amount to be recovered may exceed $500,000 (excluding interest), a claim may be compromised and settled under the preceding sentence only with the prior written approval of the Attorney General.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in text, is Pub. L. 101–380, Aug. 18, 1990, 104 Stat. 484, known as the Oil Pollution Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 2701 of this title and Tables.

Amendments

2017—Subsec. (c). Pub. L. 115–91 inserted “or other facility located seaward of the exclusive economic zone” after “foreign offshore unit”. 2004—Subsec. (d). Pub. L. 108–293 added subsec. (d). 1996—Subsecs. (b), (c). Pub. L. 104–324 added subsec. (b) and redesignated former subsec. (b) as (c).

§2715 Subrogation