BP has won a partial victory in its court battle over compensation to those affected by the Gulf of Mexico oil spill, which could save the oil giant millions in payouts.
An appeal court ruled that BP, who is fighting a series of court battles relating to the April 2010 disaster, should not have to pay those who losses were not traceable.
Further payouts to claimants who did not suffer economic loss or property damage as a result of the spill were also halted on Monday by the Circuit Court of Appeals in New Orleans.
The disaster, which was triggered when BP’s Deepwater Horizon oil platform exploded, killing 11 men and causing the largest marine disaster in US history, wiped more than half the value off the company’s shares.
Costs have already spiralled out of BP’s control, with the company alleging that “absurd” and “fictitious” claims were forcing the bill beyond the current £42.4bn.
But Monday’s ruling represents a legal reprieve for BP, who complained that the payout formula worked out by settlement administrator Patrick Juneau was too generous, as it compensated people and businesses that were not harmed.
In March of this year, US District Judge Carl Barbier approved the formula, but the appeals court ruled the judge “erred” in doing so.
Monday’s ruling stated: “This court's expressing its views through two different opinions may have created interpretive difficulties on the remand, but the district court erred by not considering the arguments on causation.”
BP agreed in 2010 it would make compensation payments to those who suffered economic losses as a result of the Gulf of Mexico oil spill. The company originally estimated the settlement would cost $7.8 billion, but in July raised its estimate to $9.6 billion.
Around $3.78 billion has already been paid out by BP.
BP is battling a separate case in Texas, which ruled in October that the company could face tens of millions of dollars of new claims from British shareholders who lost money after the disaster.
telegraph.co.uk
An appeal court ruled that BP, who is fighting a series of court battles relating to the April 2010 disaster, should not have to pay those who losses were not traceable.
Further payouts to claimants who did not suffer economic loss or property damage as a result of the spill were also halted on Monday by the Circuit Court of Appeals in New Orleans.
The disaster, which was triggered when BP’s Deepwater Horizon oil platform exploded, killing 11 men and causing the largest marine disaster in US history, wiped more than half the value off the company’s shares.
Costs have already spiralled out of BP’s control, with the company alleging that “absurd” and “fictitious” claims were forcing the bill beyond the current £42.4bn.
But Monday’s ruling represents a legal reprieve for BP, who complained that the payout formula worked out by settlement administrator Patrick Juneau was too generous, as it compensated people and businesses that were not harmed.
In March of this year, US District Judge Carl Barbier approved the formula, but the appeals court ruled the judge “erred” in doing so.
Monday’s ruling stated: “This court's expressing its views through two different opinions may have created interpretive difficulties on the remand, but the district court erred by not considering the arguments on causation.”
BP agreed in 2010 it would make compensation payments to those who suffered economic losses as a result of the Gulf of Mexico oil spill. The company originally estimated the settlement would cost $7.8 billion, but in July raised its estimate to $9.6 billion.
Around $3.78 billion has already been paid out by BP.
BP is battling a separate case in Texas, which ruled in October that the company could face tens of millions of dollars of new claims from British shareholders who lost money after the disaster.
telegraph.co.uk
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