As BP Oil Spill Trial Begins, Don Godwin Takes Center Stage

SERVING BUSINESS LAWYERS IN TEXAS

By Mark Curriden, JD “I’ve been involved in some big cases, but the Staff Writer for The Texas Lawbook Deepwater Horizon is the largest multi-district February 24, 2013 – During the past two decades, litigation ever consolidated into one trial,” Donald Godwin has gotten his best client, says Godwin, who is the founding partner Halliburton Co., out of some pretty big messes. of Dallas-based Godwin Lewis. “This case is unprecedented, both in terms of the size of the He negotiated a $4 billion settlement resolving litigation and the amount of money at stake. 382,000 potentially devastating asbestos lawsuits facing the Houston-based oil field services “The Exxon Valdez lawsuit was huge, but it corporation. He fought a billion-dollar dispute pales in comparison to the Deepwater Horizon,” over an environmental dumpsite in Alabama – he says. “The trial will likely last more than a a case Godwin says settled “very favorably” for year. Damages could exceed $70 billion. his client. In 2004, he battled – and eventually settled – a dispute over a $680 million contract “I’ve never seen anything like it. Nobody has.” involving an oil field in Kazakhstan. BP, of course, is the defendant that has received On Monday, Godwin the most attention because it owned and operated again takes center stage the Macondo well, but other defendants, to defend Halliburton in including Houston-based Transocean, which what is undisputedly the owned the Deepwater Horizon, and Halliburton, largest environmental which was a contractor on the rig and well, litigation ever. The long also face potentially devastating damages. awaited trial starts in New Last year, BP reached two major settlement Orleans to determine agreements. The UK oil giant agreed with the who is responsible for U.S. Justice Department to plead guilty to 11 Donald Godwin the Deepwater Horizon felony counts involving the deaths of the workers rig explosion that killed and paid a $4.5 billion fine, which was the largest 11 people and resulted in more than four ever in U.S. history. A handful of individuals also million barrels of oil being spilled into the Gulf of have been charged and are awaiting trial. Mexico in 2010. BP also reached a $7.8 billion with a limited In the weeks and months following the BP number of plaintiffs on a limited number of oil spill, thousands of lawsuits were filed by undisputed claims, such as basic clean up costs fishermen and shrimp boat operators, hotels and incurred by the states, as well as undisputed restaurants, banks and real estate companies. health-related costs and damages for some The U.S. government sued under the Clean Water individuals who live closest to the Gulf. Act. Four states – Alabama, Florida, Louisiana and Mississippi – claim the oil spill costs In January, Transocean reached its own them billions of dollars in lost tax revenues. agreement with the federal government by Even teacher pension funds and a handful of pleading guilty to violating the Clean Water Mexican state governments have sued, claiming Act and paying $1.4 billion in civil and they were injured. criminal fines.>

This weekend, the Wall Street Journal reported International Corp., which manufactured the that the Justice Department and BP were in failed blowout preventer. “We all have assigned negotiations to settle the federal government’s seating. There will be lawyers sitting in the portion of the suit for an estimated $16 billion. jury box.

Halliburton is the one company that hasn’t made With so many prominent trial lawyers actively any pretrial settlements, which legal experts participating in the trial, the “logistics of running say only enhances Godwin’s reputation as a this trial for the judge and court staff is like “gun-slinging risk-taker.” putting on the Lion King, Les Miserables and Miss Saigon on the same stage at the same time,” “We aren’t going to New Orleans to break even says Melsheimer. and we aren’t going down there to wave the white flag,” says Godwin. “We are going to win.” “Knowing Don, I think he will thrive in that environment,” he says. Legal observers say that Godwin has shown a willingness in the past to settle a case when it is The son of a North Carolina Pontiac car in the best interest of the client. salesman, Godwin worked his way through high school stocking shelves at Winn Dixie. He quickly “The fact that Don isn’t interested in a settlement excelled, becoming manager of the produce shows that he feels he’s holding a pretty good section and later managing the whole store. hand as far as the evidence and the court is Even so, law school wasn’t in the plans. concerned,” says Fish & Richardson partner Tom Melsheimer of Dallas. Godwin’s first love was the tax system. He became a CPA and then received a master’s U.S. District Judge Carl degree in accounting. But that wasn’t enough. Barbier, who is overseeing In 1973, he graduated from Southern Methodist all the civil claims in the University Dedman School of Law and joined a litigation, has divided the Dallas firm that slowly transitioned him from tax trial into three stages. Phase law to litigation. one, which starts Monday, focuses exclusively on In 1980, Godwin started his own law firm with what caused the explosion George Carlton called Godwin & Carlton. In the and the spill and 33 years since, the law firm grew and shrank, Tom Melsheimer allocating responsibility only to grow again, depending on the litigation against the defendants. caseload. The name following Godwin on the The first phase is expected to last three to four door has changed a few times. Last year, Godwin months. The second phase of the trial will announced that former state District Judge determine the amount of oil spilled into the Gulf, Marilea Lewis, who is an expert in family law, while the third phase will determine damages. would be the second name on the firm’s marquis.

The first two phases of the trial will be heard Godwin says the invitation for him to get by Judge Barbier, but the final stage to levy the involved in the BP oil spill litigation came as he financial judgments will be decided by a jury. was preparing to watch the Kentucky Derby on May 1, 2010, just 10 days after the explosion. “There are literally hundreds of lawyers who are His long-time friend and Halliburton General actively participating in this case – the courtroom Counsel Bert Cornelison wanted him to lead the is going to be packed,” says Houston trial company’s legal efforts related to the BP spill. > lawyer David Beck, who is defending Cameron

Cornelison was the in-house litigation head for strategic advantage in the courtroom,” says EDS and later Dresser Industries. Halliburton Melsheimer. “It’s like everyone else is trying a acquired Dallas-based Dresser for $7.7 billion civil case [requiring a mere preponderance of in 1998. Dresser’s assets were accompanied with the evidence] while Don is trying a criminal case tends of thousands of asbestos lawsuits, which [which requires beyond a reasonable doubt].” Godwin helped resolve. Godwin also scored a major advantage early in the “There are few people you would want more at case when he got a key engineering expert witness your side if you have to have a fight in a dark for BP to admit under oath that the Deepwater alley than Don,” Cornelison told D CEO magazine Horizon blast might not have occurred if officials in 2011. from BP and Transocean hadn’t misinterpreted key “well-integrity tests.” In the nearly three years since being hired, Godwin says he’s had 45 lawyers work on the According to a report in Bloomberg News, case, taking more than 200 depositions and BP officials interpreted the negative-pressure examining millions of pages of documents. test as showing that the cementing provided by He says there are a dozen paralegals and three Halliburton had sealed off leaks in the well. IT support staff working on the case full-time. “If the negative test had been correctly interpreted Lawyers familiar with Godwin say his hourly by BP and Transocean and a determination billable rate ranges from $675 to $800 an hour. was made that the cement job was not a good They estimate that he’s already put about 10,000 job, remediation work could have been done hours into the case, and that’s before the judge that would have resulted in this blowout not has brought down the trial’s opening gavel. occurring. Would you agree with that?” Godwin “I’ve spent more time on an airplane going to asked in the deposition. take depositions in London and court hearings “I would agree with that,” J.J. Azar, the expert, in New Orleans than I’ve been at home,” he says. responded, according to the Bloomberg report. Godwin has scored numerous legal successes “My client was not given an opportunity to go going into Monday’s trial. For example, in and correct anything that might have been he convinced U.S. District Judge Barbier in wrong with the cement job because the negative New Orleans to rule that Halliburton’s contract test was misinterpreted. Isn’t that a fact, sir?” with BP requires that BP pay any compensatory Godwin asked. damages, which is payments to victims for losses, leveled against Halliburton for its work on the “That was a fact,” Azar answered. Deepwater Horizon. While Godwin declines to discuss specific As a result, Halliburton will only have to pay evidence about the case on the eve of trial, any money if the judge finds that the company he says he is confident that his client will not be acted with gross negligence or wanton reckless held responsible for the tragedy. behavior, which would allow the court to levy “We are going to tell the story about why punitive damages against Halliburton. Halliburton should not be held liable,” Godwin Legal observers say Godwin’s pretrial win puts says. “We think our case is going very well.” his client in a position of strength. Please visit www.texaslawbook.net for more articles “Don now knows the burden of proof against his on business law in Texas. client is higher, which gives him a tremendous