Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



BP loses bid to stop Gulf oil spill payments during Supreme Court review

05.29.2014  | 

The US Court of Appeals in New Orleans rejected the UK-based company’s request to maintain a temporary halt on payments to businesses that can’t prove they were directly damaged by the spill.

Keywords:

By MARGARET CRONIN FISK and LAUREL BRUBAKER CALKINS
Bloomberg

BP must pay hundreds of millions of dollars in damage claims while it seeks US Supreme Court review of disputed payments in its $9.2 billion accord over the 2010 Gulf of Mexico oil spill, a court ruled.

The US Court of Appeals in New Orleans rejected the UK-based energy company’s request to maintain a temporary halt on payments to businesses that can’t prove they were directly damaged by the spill. US District Judge Carl Barbier ordered the settlement’s administrator to resume making the stalled payments.

BP settled with most private-party plaintiffs in 2012, initially estimating the cost of the agreement at $7.8 billion. The company contends a flawed interpretation by the claims administrator helped raise the price to $9.2 billion or more.

Barbier in December suspended payments to all businesses harmed by the spill, even those with losses unquestionably linked to the disaster, while the appeals court weighed BP’s concerns.

On May 19, the appeals court refused to reconsider its earlier rejection of BP’s complaint that its claims administrator was misinterpreting the accord and approving hundreds of millions of dollars in “fictitious” claims.

“We are disappointed and will seek review by the US Supreme Court of this ruling,” Geoff Morrell, a spokesman for the London-based company, said in an e-mail about the appeals court denial of a continued halt on payments.

‘Buyer’s Remorse’

Lawyers for spill victims have accused BP of “buyer’s remorse” and trying to renege on a settlement that is proving more costly than anticipated.

“We are pleased that the court has refused BP’s latest request to further delay claims payments,” Steve Herman and Jim Roy, lead attorneys for the spill victims, said in an e-mail.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Related articles

FEATURED EVENT


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


64%

36%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2014 Hydrocarbon Processing. © 2014 Gulf Publishing Company.