BP Spill Claims

BP Claim Appeals – A Disturbing Loss for BP

Posted by on Mar 3, 2014 in Uncategorized | 2 comments

The result of the court proceedings during the latter part of February 2014, on the Gulf of Mexico oil spill claim appeal, could only be disturbing for the London-based oil firm British Petroleum (BP). This is because New Orleans’ 5th Circuit Court of Appeals supported, despite divisive votes, the December 2013 ruling made by a U.S. District, which authorized payments of business economic loss claims and lifted any injunction that prevented such payments.

These economic losses are supposed to have resulted from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico, which claimed the lives of 11 workers and caused as much as 210,000,000 gallons or 4.9 million barrels of oil gushing from the 35,050 ft. deep seabed well.

This BP oil spill is said to be the biggest and worst marine oil spill in the world, as well as the largest ecological disaster in the US. Back in 2010, BP prepared to meet the consequences of the accident, including payment of hundreds of millions of dollars in settlement with all those who have been affected, and will be affected, by the oil spill.

The recent court injunction, however, is making BP cry foul over the method applied by the Claims Administrator who, until now, continues to receive more claims that ask for still greater amounts. Understandably for BP, which is moving to retrace the settlement agreement it made, since it feels that the accounting methodology for determining losses has become too slack and, worse, those who are filing for claims speak of losses that do not even have sufficient proof of link to the spill. Despite these, the court has ruled that payments should be made.

BP intends to push further its appeal, which would save it from paying claims based on fictitious losses or losses that the oil spill has not caused at all. To date, the giant oil firm has already paid individuals and businesses about $9.2 billion, almost $2 billion more than its original projection. BP is afraid, however, that with the recent turn of events and court decisions, the amount can still grow higher.

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