BP heads back to court for US oil spill appeal

BP is set to appeal tomorrow against the amount of its 8.5bn-dollar settlement over the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

BP is set to appeal tomorrow against the amount of its 8.5bn-dollar settlement over the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

The oil giant is making a third appeal to Judge Carl Barbier, claiming the settlement administrator Patrick Juneau has made some compensation payments for "fictitious" losses. BP has asked for an injunction to stop these claims from being paid, according to Bloomberg.

On Friday, New Orleans Federal District Court judge Barbier will preside over a court hearing on this injunction request and a lawsuit filed by BP against Juneau over the issue.

In its motion for an injunction BP said that due to Juneau's decisions on certain business economic-loss claims "BP is already exposed to hundreds of millions of dollars in fictitious 'losses' that were never contemplated by the agreement."

"Although the ultimate exposure is at this time inestimable, it grows daily and could cost BP billions," the motion added.

The group set aside $7.8bn when it originally agreed to pay compensation in 2012.

BP has claimed Juneau has misinterpreted the settlement agreement and was overpaying and on Wednesday filed a notice of appeal with the US Court of Appeals in New Orleans of Barbier's April 5th order which had affirmed the claims administrator's interpretations.

Bloomberg noted that BP may still face claims from by the US government, the states of Louisiana and Alabama, nor institutions or companies affected subsequently.

Back in December BP had seemed content with the settlement, saying: "We believe the settlement, which avoids years of lengthy litigation, is good for the people, businesses and communities of the Gulf and is in the best interests of BP's stakeholders."

But since that time BP has filed motions to delay payments, sued Juneau and now has appealed Judge Barbier's motion denials to alter the settlement agreement in District Court.

If the judge does rule against BP tomorrow, as is widely expected, the group still has the chance to appeal to appealing to an Appellate Court which could further delay the settlement.

OH

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021