Kevin Costner, Stephen Baldwin in court as trial opens over BP deal for Gulf spill clean-up device

Updated at 2:35 p.m. ET

(CBS/AP) NEW ORLEANS - Jury selection began Monday in a legal fight between two Hollywood stars over investments in a device used to try to clean up BP's 2010 oil spill in the Gulf of Mexico.

Actor Stephen Baldwin, center, arrives at Federal Court after a lunch break, in New Orleans, on June 4, 2012.

/ AP Photo/Bill Haber

In his lawsuit, actor Stephen Baldwin claims Kevin Costner and a business partner duped Baldwin and a friend out of their shares of an $18 million deal for BP to buy oil-separating centrifuges after the April 2010 spill.

U.S. District Judge Martin L.C. Feldman told prospective jurors they could not be influenced by the celebrity status of Baldwin and Costner. Both actors were in court. Costner wore a blazer and khakis, while Baldwin wore an olive suit.

"Celebrity has no place in this courtroom or in any of the issues that need to be resolved by the jury in this trial," Feldman said.

Jury selection ended shortly before 1 p.m. ET, CBS New Orleans affiliate WWL-TV reports.

(Scroll down to watch a report from WWL-TV on the day's developments)

Special Section: Gulf Coast Oil Disaster
Stephen Baldwin suing Kevin Costner over BP deal
Kevin Costner pitches $895M oil spill plan

Feldman asked the potential jurors whether the entertainers' on-screen portrayals compromised the ability to deliver an objective verdict. No one in the pool said they would feel influenced.

Among Baldwin's roles was caveman Barney Rubble in "The Flintstones: Viva Rock Vegas." Costner's films include "Dancing with Wolves," "Field of Dreams," and "JFK," Oliver Stone's film with New Orleans connections to the assassination of President John F. Kennedy.

Baldwin and Costner did not interact before the proceedings started. Baldwin told The Associated Press his attorneys had advised him not to comment.

Baldwin and his friend, Spyridon Contogouris, said they didn't know about the deal when they agreed to sell their shares of Ocean Therapy Solutions, a company that marketed the centrifuges to BP, for $1.4 million and $500,000, respectively.

BP ordered 32 of the centrifuges and deployed a few of the devices on a barge in June 2010. BP capped its blown-out Macondo well the following month and kept more oil from leaking until the well was permanently sealed in September 2010.

(At left, watch Costner testify to Congress about the machine in 2010)

Baldwin and Contogouris claim they were deliberately excluded from a June 8 meeting between Costner, his business partner Patrick Smith and BP executive Doug Suttles, who agreed to make an $18 million deposit on a $52 million order for the 32 devices, according to the lawsuit.

Actor Kevin Costner arrives at federal court in New Orleans June 4, 2012.

/ AP Photo

Later that month, Costner and Suttles visited Port Fourchon, La., to talk about the plan to use the centrifuges.

"It was designed to give us a fighting chance, to fight back the oil before it got us by the throat," Costner said at the time.

Baldwin and Contogouris say they were entitled to shares of BP's deposit. Their lawsuit claims Costner and Smith schemed to use BP's deposit buy their shares in Ocean Therapy Solutions.

"Maybe one of the directions that Mr. Costner might go as a defendant in this case is that he had taken a great deal of risk as it relates to these machines," legal analyst Chick Foret told WWL-TV.

Costner said he didn't attend a June 6, 2010, meeting at which Contogouris agreed to sell his OTS interests.

"Not only did Costner not know that Plaintiffs were negotiating to sell their OTS interests, he was surprised and offended by the idea that Contogouris and Baldwin would walk away from OTS with almost $2 million in cash despite having invested no money in the company, and at a time when a contract with BP was uncertain to materialize," says a court filing summarizing Costner's version of events.

Baldwin and Contogouris are seeking more than $21 million in damages. Costner and other defendants also are seeking damages in counterclaims.

[DETracy]

I don't see how Mr. Coster or anyone else can possible sell the rights to a machine that was patented many years ago as a cream separator. Perhaps someone should do a patent search on this before millions are spent.

[beachgirl2365]

Wouldn't Costner's disclosure of a "Potential" deal be considered insider information and therefore illegal? Was this information provided to other investors in the company? Baldwin & his partner surely weren't the only ones investing in Costner's company at the time. I think Baldwin was mad that he cashed out too soon. I'm rooting for you Kevin!

[baileycccc]

It is so great to see such a decision about money between celebrities put into the hands of a "down and out jury" from New Orleans. May the best liars win.

[wizardlady]

So we should all CRY crocodile tears for these greedy rich folks who took advantage of a situation.......to make money.

We, the public, stupidly support their profession of acting to the level that they are driven to make more money, more money and more money......never enough......but the grim reaper still visit them just like everyone else.....at which time rich or poor does not matter!!

[mari1963]

Like Kevin Costner is such a saint - NOT! He makes babies and doesn't take care of them. How many children has he made now? He is no example for anyone to live by. And Mr. Baldwin is as dumb as a stone. Both of them are idiots. Why are we giving this story any time whatsoever?

[erasmus111]

"Both of them are idiots."

Oh my, something else I agree with you on.

[BRIANSD]

Damn sraight

[Ourdoc1]

Baldwin is a scumbag that cares about nothing but himself and money.

[endrepubs]

This whole thing with actors investing in obscure centrifuges to clean oily water sounds pretty weird. How did they get into such a business? You would think the professionals ie. the oil companies would have stuff like this.

[endrepubs]

@Stentor7,
You are, by far, the biggest jerk, S. O .B I have ever encountered on the web.

[opinionseveryonehasone]

I believe the Baldwin brother got out too soon and has his regrets. You snooze you lose... it's the way it goes. I'm sure it sucks but YOU SOLD your shares. That was your decision. The only reason you're crying about it now is because YOU SOLD to soon and didn't get more money. Imagine that the bottom fell out, I bet he wouldn't sue to help with the losses.

[sjc_1]

This is essentially a large wet/dry Shop Vac and they are fighting over it. This does sound a bit shady, Costner making a deal without telling them and then wanting to buy their shares with the proceeds. Sounds like a leveraged buyout by withholding information.

[BigDumbApe]

Just a couple of replies at once...

>> RangerDan107: "I've got a box of these frozen deformed fish on the way to Rush Limbaugh right now. He said the spill was harmless. I want to see him eat these fish with their eyes hanging out of their sockets."

Actually, the Obama Administration said the spill was harmless TOO. They trumpeted the fact that the spill was never AS BAD as some made out from Day One. And they NEVER even bothered to change the laws on oil rig safety protocols after the spill. In fact, the Obama Administrator in charge of inspecting the rigs and granting permits has claimed repeatedly that things "worked out fine, the spill has been completely contained." So if you're going to mail rotting fish to Rush because of his statement, I hope in the spirit of balanced fairness that you're planning to send some fish to Washington TOO.

>> Hypnotoad72: "Amusingly, the oil company - the one who works with oil for a living, had no clue how to clean up after itself so it relied on some hollywood actors?!!"

Costner became interested in marine life/ocean safety while filming WATERWORLD ages ago. And to his credit, he put his money where his mouth is by helping to start up and fund this venture. And the technology was based on a very solid idea, it was just that no one had figured out a way to make it work. It took over 15 years of time and continued investment to finally get it to work. But (again) to Costner's credit, he stuck by the company and now they're reaping the rewards for having created something that works. So good on them.

>> Endrepubs: "The only way the dumbest Baldwin brother can make money these days is by suing."

Well, to be fair, he lawsuit wasn't bounced by a judge. Which means someone thought it was based on a legitimate question. Yes, like ANY investor, Baldwin can choose to keep his money with a company or pull it out -- taking EITHER a small profit or a loss. That's venture capitalism at work.

But the LEGAL question here is totally valid. Namely, DID Costner and his original core partners PURPOSEFULLY WITHHOLD information about upcoming sales...and the MILLIONS of dollars that would be flowing in...from other investors (like Baldwin), so they would sell short and leave the company -- thus meaning that Costner (and his core partners) would make even more money in the end. This is all about the timeline and IF information was PROPERLY given out. Yes, Baldwin decided to sell -- but he WOULDN'T have sold if he'd been told that big deals were ALREADY being signed behind the scenes.

Bottom line: Sure, investors always come and go. But it also wouldn't be ethical for Costner to DUPE people into selling short, by holding back valuable information that investors are LEGALLY entitled to.