Written by Jen Finn
Faced with hundreds of damage claims it says are fictitious and inflated, BP must decide whether to dive into a protracted legal battle it had sought to avoid when it settled a class action over the 2010 Gulf of Mexico oil spill.
The British oil giant asked the Fifth U.S. Circuit of Appeals in New Orleans this week to halt the claims. Should its challenge before the three-judge panel fail, BP will face a choice: ask for a hearing by all the court's judges, appeal to the U.S. Supreme Court, or try picking off individual cases one by one, legal experts say.
BP declined to comment on what its strategy would be.
At issue is how to interpret a 1,000-page settlement document BP negotiated with a committee of lawyers working on behalf of thousands of individuals and businesses affected by the Deepwater Horizon rig explosion. The blast killed 11 men and dumped millions of barrels of oil into the Gulf in one of the country's worst environmental disasters.
BP estimated the settlement, approved by a U.S. District Court in Louisiana in 2012, would cost $7.8 billion, but the payouts may end up ballooning to billions more.
The company has already paid more than $2 billion toward the 198,021 claims filed under the agreement. Overall it says it handed out over $10 billion to those affected by the spill and around $14 billion in cleanup and response costs.
Several lawyers not involved in the case said BP should have known it might be on the hook for more money and erred by agreeing to a deal that had no payout cap.
BP said it stands by the settlement but insists the problem is the person appointed by the court to dole out the money, former Louisiana plaintiffs lawyer Patrick Juneau. The tussle is over how the administrator is calculating the amount of business losses due to the spill a claimant can be compensated for. BP takes issue with the time frame and the accounting methods Juneau is using.
Geoff Morrell, a BP spokesman, said Juneau's "misinterpretation" of the agreement "has ignited a feeding frenzy among trial lawyers attempting to secure money for themselves and their clients that neither deserves."
In a statement, Juneau said, "the proper place to address issues concerning the settlement agreement is in the courts."
U.S. District Judge Carl Barbier of New Orleans, who is overseeing the explosion of spill-related litigation, has repeatedly backed Juneau's interpretation.
So BP appealed to the higher court.
Read the full story at Reuters>>
National Fisherman Live: 3/10/15
In this episode, Online Editor Leslie Taylor talks with Mike McLouglin, vice president of Dunlop Industrial and Protective Footwear.
National Fisherman Live: 2/24/15
In this episode:
March date set for disaster aid dispersal
Oregon LNG project could disrupt fishing
NOAA tweaks gear marking requirement
N.C. launches first commercial/recreational dock
Spiny lobster traps limits not well received
The Mid-Atlantic Fishery Management Council has scheduled a series of scoping hearings to gather public input for a proposed action to protect unmanaged forage species.
The proposed action would consider a prohibition on the development of new, or expansion of existing, directed fisheries on unmanaged forage species in the Mid-Atlantic until adequate scientific information is available to promote ecosystem sustainability.Read more...
The National Marine Educators Association has partnered with NOAA this year to offer all NMEA 2015 conference attendees an educational session on how free NOAA data can add functionality to navigation systems and maritime apps.
Session topics include nautical charts, tides and currents, seafloor data, buoy networking and weather, among others.Read more...