Regardless of the sector of the economy in which your Gulf Coast business operates, you probably have heard plenty about the impact of the BP oil spill and oil rig explosion. The environmental disaster resulting from the explosion of the PB Deepwater Horizon offshore oil rig, which resulted in eleven fatalities, caused the most massive oil spill in the history of petroleum extraction. The consequences to the Gulf Coast after the oil rig sank involved devastating effects on the environment, wildlife, and the economic health of the region. The impact was exacerbated by the staggering 87 days required to stem the glut of oil flowing into the Gulf of Mexico.
Investigations conducted by multiple organizations following the oil spill concluded that BP engaged in a pattern of ill-advised cost-cutting practices that promoted an unsafe environment leading to the tragic spill. BP recognized that its survival was dependent on taking remedial action to mitigate the impact of its irresponsible conduct and public relations nightmare, so it established the Gulf Coast Claims Facility (GCCF). The $20 billion fund was established to cover claims filed related to the Deepwater Horizon spill. Approximately $6.2 billion was distributed from the fund to settle claims accepted from August 2010 until July 2012 after which the fund was replaced by a court-supervised settlement program.
Some Gulf Coast businesses owners are unaware that the formula used by the BP settlement agreement permits payment to claimants without proof of “actual damages.” BP filed a motion requesting a court to permit the company to cease making payments on thousands of claims, but the request was denied in July 2013. Although the requirement to pay the claims was self-imposed under a settlement agreement drafted by BP, the company appealed the denial of its motion to discontinue payments to the Fifth Circuit Court of Appeals. However, BP’s request was denied because the 5th Circuit upheld the lower court finding that the settlement agreement did not impose a duty to prove direct harm from the spill to recover under the terms of the BP settlement agreement.
There are two important takeaways from this litigation for potential BP claimants. Ambiguous terms or provisions in the BP settlement agreement generally will be construed against the company because it drafted the agreement. Further, businesses in Mississippi and throughout the Gulf Coast region might have a claim for compensation from the BP fund. While not all businesses will have a viable claim, our Mississippi BP oil spill claim lawyers are currently evaluating the rights of those adversely affected to determine their legal right to financial compensation.
Our Mississippi BP oil spill law firm recognizes the enormous financial impact of this tragedy, and we are committed to pursuing the fullest compensation for our clients. At Barrett Law, our Mississippi BP Oil Spill Attorneys are here to help. Contact our firm today at 800.707.9577 to schedule your free consultation, so we can answer any questions you may have regarding filing your claim.
