BP wins reprieve over Gulf of Mexico payouts

[cronus]

http://www.bbc.co.uk/news/business-24377548

BP wins reprieve over Gulf of Mexico payouts

Oil giant BP's attempts to limit claims over the 2010 Gulf of Mexico oil spill have been given a boost after a US appeals court halted some payments.

A federal appeals court has asked the lower district court to take a fresh look at which claims are legitimate.

The higher court said that if businesses that did not suffer losses from the spill were compensated, the whole settlement could be invalid.

It is a key win for BP which had said the payment formula was too generous.

The oil giant, which had agreed to pay compensation for the disaster, had claimed that the existing formula paid people who were not harmed.

BP had expected payouts to total $7.8bn (£4.9bn), but said that the amount was being driven higher by excessive fees and bogus claims.

"There is no need to secure peace with those with whom one is not at war," Judge Edith Brown was quoted as saying by the Reuters news agency.

"The district court had no authority to approve the settlement of a class that included members that had not sustained losses at all, or had sustained losses unrelated to the oil spill, as BP alleges.

"If the administrator is interpreting the settlement to include such claimants, the settlement is unlawful," she added.

BP has faced about $42.4bn in charges since the disaster aboard the Deepwater Horizon drilling rig, which triggered the worst offshore oil spill in US history.

The blast killed 11 workers and released an estimated four million barrels of oil into the gulf.

BP has made two previous, unsuccessful attempts, to halt compensation payments.

(continued)

EDIT: Split from climate change thread - KLR

[klr]

That's really not climate change news at all.

[cronus]

That's really not climate change news at all.

It's important as it shows that money talks and after three years hard lawyering BP is walking away from the disaster. It's showing that they really do think the planet is less important than themselves up in those executive offices.

[klr]

That's really not climate change news at all.

It's important as it shows that money talks and after three years hard lawyering BP is walking away from the disaster. It's showing that they really do think the planet is less important than themselves up in those executive offices.

No sale, thread split. It's not climate news, but it is an important news item in its own right.

[mistermack]

That's really not climate change news at all.

It's important as it shows that money talks and after three years hard lawyering BP is walking away from the disaster. It's showing that they really do think the planet is less important than themselves up in those executive offices.

Or it means that BP don't like getting ripped off, and the judge agrees.
The amount that BP pays will cost the public when they fill up.
Other oil companies will be watching, and saying to themselves, '' that could happen to us '' and will be upping their prices now, to hedge against it in the future.

Either that, or insuring the risk, which has the same effect on prices.

[cronus]

BP would have a lot to answer for. Good thing they are in the money.

[Thinking Aloud]

That's really not climate change news at all.

It's important as it shows that money talks and after three years hard lawyering BP is walking away from the disaster. It's showing that they really do think the planet is less important than themselves up in those executive offices.

Well it shows that if you interpret "not wishing to compensate people who didn't actually lose anything" as "walking away". And how would paying money in compensation to businesses/individuals that were not affected by the spill in any way be "good for the planet"? That's a non-sequitur of lunar proportions.

You should get yourself a job as an ambulance chaser!

[Clinton Huxley]

There does seem to be a bit of a feeding frenzy going on. Not sure a US oil company would have got it in the neck to quite the same degree. One could argue that it is in the USAs strategic interests to see BP overwhelmed by compensation claims so US firms can pick up assets on the cheap.

[cronus]

That's really not climate change news at all.

It's important as it shows that money talks and after three years hard lawyering BP is walking away from the disaster. It's showing that they really do think the planet is less important than themselves up in those executive offices.

Well it shows that if you interpret "not wishing to compensate people who didn't actually lose anything" as "walking away". And how would paying money in compensation to businesses/individuals that were not affected by the spill in any way be "good for the planet"? That's a non-sequitur of lunar proportions.

You should get yourself a job as an ambulance chaser!

I was directly traumatised by this oil spill filling up every news slot like the end of the world was unfolding. Imagine how disappointed I was by realizing it'd only dead zoned the Gulf of Mexico?

[Audley Strange]

I'm surprised we haven't tried to force sanctions and use military action in an attempt to protect British interests overseas.

[mistermack]

The crazy thing is that the US government hammered BP as a foreign firm, because of the B in the name.
BP is actually 50% US owned, so they are hurting their own investors as much as British ones.

And like I said, they are also pushing up prices at the filling station in the meantime. People making false claims, or dishonestly inflating their claims, are taking money from US and British pensioners, and US fuel customers.

Not a great idea. But, it buys votes.

[Clinton Huxley]

We should withold episodes of Downton Abbey until the US plays ball.

[mistermack]

As far as ownership goes, US investors actually own more shares than the UK investors, but 38%, not 50%.

As of 2012, 38% of BP shares were held by American investors and 35% by British investors, with the remaining shares held by investors from other countries.[279] Major institutional shareholders include BlackRock Investment Management (UK) Ltd. (5.39% as of 19 February 2013), Legal & General Investment Management Ltd. (3.82% as of 19 February 2013), and Capital Research & Management Co. (Global Investors) (2.33% as of 19 February 2013).[280]

[Audley Strange]

Well that's even worse. Why aren't the U.S. blowing the shit out of The U.S. to protect U.S. interests at home. It's not like that government gives a fuck about it's people even in a P.R. sense.

[mistermack]

How come this thread is listed in News, and Science? I've not seen that before.
Is it that important?