BP hits court setback on Gulf oil spill claims

In a surprise to some observers, the Fifth Circuit appeals court in New Orleans has made a decision which would see BP pay compensation to some claimants who suffered no loss as a result of the 2010 Deepwater Horizon oil spill.

The Fifth Circuit appeals court in New Orleans has made a decision which would see BP pay compensation to some claimants who suffered no loss as a result of the spill. Cheryl Casey

The three-person court is seen as being more pro-business than some other courts so its two-to-one decision came as something of a surprise. However, BP could still appeal against this decision which would be likely to see the oil giant paying out far more than the US$7.8b that it originally estimated. Claimant lawyers have hailed this decision as 'an enormous victory'. But the dissenting judge, Emilio Garza, said that a settlement would be legally invalid if it 'impermissibly aggregates those whose injuries were purportedly caused by the oil spill with those without any arguable claim of such causation'. Source: Financial Times

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