National Fisherman

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>>

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Inside the Industry

Alaska Gov. Bill Walker is required by state statute to appoint someone to the Board of Fisheries by today, Tuesday, May 19. However, his efforts to fill the seat have gone unfulfilled since he took office in January. The seven-member board serves as an in-state fishery management council for fisheries in state waters.

The resignation of Walker’s director of Boards and Commissions, Karen Gillis, fanned the flames of controversy late last week.

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Keith Decker, president and COO of High Liner Foods, will take over for the outgoing CEO, Harry Demone, who will assume the role as chairman of the board of directors. The Lunenburg, Nova Scotia-based seafood supplier boasts sales in excess of $310 million (American) for the first quarter of the year.

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