Sunday, July 13, 2014





Judge suspends some BP settlement payments


October 03. 2013 5:37PM
Associated Press

Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


(AP) A federal judge on Thursday ordered the administrator of a multibillion-dollar settlement over BP's 2010 Gulf oil spill to immediately suspend making settlement offers and payments to some businesses that claim the company's 2010 oil spill cost them money.


U.S. District Carl Barbier issued his order a day after an appeals court reversed his rulings in a dispute between BP and a team of private plaintiffs' attorneys over the settlement's formula for compensating businesses.


BP argued that claims administrator Patrick Juneau's interpretation of the settlement could have forced it to pay billions of dollars for bogus or inflated business claims. Barbier had upheld Juneau's interpretation.


Barbier said Thursday's order applies to any business claims in which the "matching of revenues and expenses is an issue," but he didn't specify how many claimants could be affected.


In its ruling Wednesday, a divided three-judge panel from the 5th U.S Circuit Court of Appeals said BP has consistently argued that the settlement's complex formula for compensating businesses was intended to cover "real economic losses, not artificial losses that appear only from the timing of cash flows."


Barbier ordered Juneau to continue processing all other claims and appeals of settlement offers.


"Staying the processing or payment of all (business) claims would be overly broad and unnecessary as applied to those claims for which matching of revenues and expenses is not an issue," he wrote.


The 5th Circuit panel directed Barbier to craft a "narrowly-tailored injunction that allows the time necessary for deliberate reconsideration of these significant issues."


Barbier instructed attorneys on both sides of the dispute to provide him by Wednesday with proposed orders that comply with the 5th Circuit's ruling.


In the panel's majority opinion, Judge Edith Brown Clement said Barbier's injunction should ensure that claims for losses that didn't result from the Deepwater Horizon disaster shouldn't be paid "until this case is fully heard and decided through the judicial process."


Associated Press


Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds