Federal Judge Rejects BP’s Appeal to Halt Some Payouts

by San Antonio Attorney

A U.S. judge ruled against BP Plc, which means that it can move forward with filing an appeal for the court-appointed administrator’s method of distributing payments on Gulf of Mexico spill related claims. BP said that some of the claims were “absurd.”

According to Judge Carl Barbier, there is no justification to reverse the decision he made in March to continue the payout procedure. BP has objected at payouts such as the $21 million for a rice mill in Louisiana which is 40 miles away from the coastline and gained more income in the year 2010 than in the last 3 years.

There are over 160,000 claims that have been filed under the Deepwater Horizon Economic and Property Damages Settlement, based on the information on its website. About $1.87 billion of payouts had been distributed on more than 27,000 claims.

The cause of argument is regarding the computation of economic losses in the business, wherein about $743 million have been given out on 4,461 claims, based on the data provided by its website.

The initial estimate of the whole pay out bill was $7.8 billion. However, this amount is not capped and also determined by the decisions of Patrick Juneau, a lawyer who manages the payouts under complicated protocols laid out by the settlement deal.

The company is now considering what direction to go based on the court’s decision, but repeated that the way Juneau interprets the settlement created windfall payouts for losses that do not exist.

BP was told by the judge to take the issue up with the court of appeals.

Judge Barnier is also overseeing a trial to establish fault and total damages for the devastation at the Macondo well.

In 2010, a local attorney who represents some of the plaintiffs in claims against the oil company computed the actual damages from the oil spill between $39 billion and $50 billion.

Daniel Becnel Jr. said that BP has hired bankruptcy lawyers, although they were not preparing to file for bankruptcy. The company also denied bankruptcy rumors.

 

- An experienced Bankruptcy Lawyer San Antonio can help in filing bankruptcy or finding ways to avoid bankruptcy. It is important to talk to a bankruptcy lawyer to explore your options before filing.

 

 

 

 

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