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Page added on January 11, 2014
BP’s appeal to stop ‘fictitious’ U.S. oil spill claims fails
One of BP’s attempts to curb payouts for what it says are “fictitious” and “absurd” claims related to the 2010 Gulf of Mexico oil spill has failed after a legal appeal was rejected by a U.S. court.
BP had argued in its appeal that the administration of a 2012 settlement agreement was faulty because it allowed claimants without actual damages to join in.
But a panel of the 5th U.S. Circuit Court of Appeals on Friday affirmed a federal judge’s approval of the multi-billion dollar settlement between the oil company and businesses and individuals who lost money and property in the spill.
The ruling is a blow to the company’s attempt to curb payouts to what it says are undeserving claimants.
Two out of three judges on the appeals court panel rejected BP’s arguments. The court’s findings said that the company had failed to explain “how this court or the district court should identify or even discern the existence of ‘claimants that have suffered no cognizable injury.'”
BP said in an emailed statement on Saturday that it was assessing its legal options following the court’s decision.
“BP will continue to press its position on the proper interpretation of the settlement agreement’s provisions requiring a causal nexus between a claimant’s injury and the spill,” BP spokesman Geoff Morrell said.
BP had originally projected that its settlement in the case would cost $7.8 billion. As of late October it had boosted this estimate to $9.2 billion, and said this sum could grow “significantly higher” with billions of dollars already having been paid out to claimants who range from hotel owners to oyster gatherers.
Amongst the claims against which BP has protested are one for $21 million from a Louisiana rice mill which is located 40 miles from the coast and which earned more revenue in 2010 than in any of the previous three years.
Three years on, the shadow of the explosion of the Deepwater Horizon drilling rig continues to hang over the company. The blast ruptured a BP well killing 11 people and triggering the largest-ever U.S. offshore oil spill.
BP still faces potential fines under the Clean Water Act. It has filed numerous lawsuits to curb payouts related to the spill after taking provisions for $42.4 billion to cover the clean-up, compensation and fines.
8 Comments on "BP’s appeal to stop ‘fictitious’ U.S. oil spill claims fails"
rockman on Sat, 11th Jan 2014 5:29 pm
There will always be scam artists looking for a piece of the settlement pie. Very common in almost every industrial accident. They just busted a large group of civil servants claiming disabilities from the 9/11 attack. There was even a group that was being paid to coach them how to cheat the system.
OTOH given the magnitude of the damage from the Macondo blow out due to their foolish procedure I’m not very sympathetic. So some dishonest folks screw BP a little…too bad. If a company doesn’t do something that results in a justifiable lawsuits then the con men wouldn’t have the opening.
Twin Performance on Sat, 11th Jan 2014 6:19 pm
Whats wrong with oil spills anyway?
Makati1 on Sun, 12th Jan 2014 1:15 am
rockman, oil companies have been screwing us for decades. It’s nice to see them getting the shaft and I hope it bankrupts them. Think Iraq, Iran, etc.
Keith on Sun, 12th Jan 2014 1:51 am
I wonder it the group coaching the civil servants were really the government?
Stephen on Sun, 12th Jan 2014 11:02 am
guess for Lawyers it’s fair game to take advantage of BPs naive notion that it was fairness that the ambulance chasers were after.
But Just for the record, much more damaging to the US, is the legacy left behind those companies that will follow.
This case has promoted the well founded idea that the US legal system and its administrators are greedy and cannot be trusted to act fairly.
BP and all that follow will remember your actions and act accordingly the next time.
You will find that because of your actions no one will ever trust or treat you fairly again.
Makati1 on Mon, 13th Jan 2014 12:56 am
BP is the biggest greedy corporation on the planet. That it is tasting some of it’s own greed is great. Bring on the lawyers! It is like calling the kettle black.
Stephen on Mon, 13th Jan 2014 2:48 pm
BP, or British Petroleum I’m proud to say, has conducted itself admirably in the face of the questionable ambulance chasing US lawyers.
My guess is, Barbiers actions over this will have implications for all companies in the future seeking to trade within the US and that you will never again see the sort of integrity as shown by this British Company.
Barbier and co should enjoy the windfall while it lasts, as years of delay and questionable legal tactics lay ahead for the victims of the next big disaster.
Stephen on Fri, 17th Jan 2014 8:42 pm
This is an interesting analogy
http://www.independent.co.uk/money/spend-save/simon-read-if-a-cash-machine-pays-out-too-much-money-are-you-just-a-common-criminal-if-you-take-it-9068454.html