BP again demands halt of payments

“These new incidents demonstrate a fundamental lack of oversight or internal controls,” said a motion filed by the company. “When BP first asked for a preliminary injunction, it had compelling evidence of one scheme only. Now, the evidence shows the existence of ‘a systemic or widespread problem’ with the (Court Supervised Settlement Program).”

The motion filed with U.S. District Judge Carl Barbier said a temporary pause in the payment program, which is averaging more than $100 million in approved claims a week, according to BP, “serves the public interest because preventing even the risk of fraudulent payments is in the public’s interest and sends a clear message to future litigants that misconduct in settlement programs will not be tolerated.”

In mid-July, BP filed its first request for an emergency preliminary injunction, arguing that two of three top lawyers involved in the settlement program “apparently intervened” in the claims process — and due to the tremendous amount of money involved in the payouts — the court should grant the injunction to prevent potentially wrongful claims payments.

Barbier denied the motion after BP was unable to produce any evidence of fraudulent claims.

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