US appeals court rejects BP bid to undo ruling in oil spill cas

Tags: News
A US appeals court will not revisit a decision to reject BP Plc's bid to block businesses from recovering money over the 2010 Gulf of Mexico oil spill, even if those businesses could not trace their economic losses to the disaster.

The 5th US Circuit Court of Appeals in March voted 2-1 to authorize payments on so-called business economic loss claims, and said an injunction preventing payments should be lifted. BP asked the entire 5th Circuit to rehear the case.

However, the 5th Circuit voted 8-5 to let the March ruling stand, according to a court filing made public on Monday.

In a statement, BP spokesman Geoff Morrell said the company is disappointed in the decision, and is considering its options. Plaintiff attorneys Steve Herman and Jim Roy said in a statement they are "pleased that the court of appeals agreed that BP must honor its contract."

The decision is a setback for BP's effort to limit payments over the April 20, 2010, explosion of the Deepwater Horizon drilling rig and rupture of BP's Macondo oil well.

The disaster killed 11 people and triggered the largest US offshore oil spill.

A lower court judge had ruled that BP would have to live with its earlier interpretation of a multibillion dollar settlement agreement over the spill, in which certain businesses claiming losses were presumed to have suffered harm.

BP argued that this would allow businesses to recover for fictitious losses, but the 5th Circuit rejected its appeal.

The case is In re: Deepwater Horizon, 5th US Circuit Court of Appeals, Nos. 13-30315 and 13-30329.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • After euphoric rally, Q4 numbers will show the ugly belly of India Inc

    In the last one year, equity indices have clocked spectacular gains.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Today's Columns

Taslima Nasreen

Where priorities play googly

Many say that to keep India’s hopes alive in the ...

Purnendu Ghosh

Be afraid of how you spend your anger

To develop a cost effective product in a techno-bulged industry ...

Shona Adhikari

Anjolie Ela Menon, the storyteller, is back

Anjolie Ela Menon, one of India’s most celebrated artists, is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture