💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

BP wins right to appeal some Gulf spill damages claims

Published 09/05/2015, 00:34
© Reuters. A hard hat from an oil worker lies in oil from the Deepwater Horizon oil spill on East Grand Terre Island, Louisiana
BP
-

By Jonathan Stempel

(Reuters) - A U.S. federal appeals court said on Friday BP Plc (L:BP) deserves the right to appellate review of some damage claims awarded to people and businesses in connection with the 2010 Gulf of Mexico oil spill.

The decision by the 5th U.S. Circuit Court of Appeals in New Orleans could help BP limit its payout to victims of the explosion of the Deepwater Horizon drilling rig, which killed 11 workers and caused the largest U.S. offshore oil spill.

BP originally expected to pay $7.8 billion to resolve claims under a 2012 settlement, but by late April it had boosted its estimate to $10.3 billion, according to a regulatory filing.

About $5.13 billion has been paid out so far to 63,597 claimants, according to a website maintained by claims administrator Patrick Juneau.

In its appeal, BP complained that rules adopted by U.S. District Judge Carl Barbier compromised its right to appeal awards he approved and which the company did not like to the 5th Circuit.

Writing for the appeals court, Judge Fortunato Benavides said BP deserved that right to appeal because it did not expressly waive it.

"Where a settlement agreement does not resolve claims itself but instead establishes a mechanism pursuant to which the district court will resolve claims, parties must expressly waive what is otherwise a right to appeal from claim determination decisions by a district court," the judge wrote.

"The point at which a party seeks the district court's discretionary review is the point at which further review by this court becomes a possibility."

The 5th Circuit separately rejected BP's appeal of awards to three non-profit groups. Lawyers for spill victims accused BP of appealing the awards as a means to relitigate the entire settlement.

Samuel Issacharoff, a lawyer for the victims, declined immediate comment.

BP spokesman Geoff Morrell said the company is pleased with the ruling on appeals of individual claims determinations.

© Reuters. A hard hat from an oil worker lies in oil from the Deepwater Horizon oil spill on East Grand Terre Island, Louisiana

BP is awaiting a decision from Barbier assessing penalties under the federal Clean Water Act over the spill.

London-based BP has already taken $43.8 billion in pre-tax charges for clean-up and other costs.

The cases are In re: Deepwater Horizon, 5th U.S. Circuit Court of Appeals, Nos. 13-30843, 13-31296, 13-31299, 13-31302.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.