Though the four year anniversary of the catastrophic Deepwater Horizon oil spill is rapidly approaching, some individuals, businesses and nonprofits have still yet to receive settlement funds for their losses attributed to the disaster. As the worst offshore oil spill in history, the event sparked thousands of suits against industry giant BP, along with Transocean Ltd. and Halliburton Co. BP settled with most private plaintiffs back in 2012, but the settlement has become the source of much controversy, and BP is still fighting to see it rescinded.
Back in December of 2012, the United States District Court in New Orleans entered an order granting final approval of a settlement for plaintiffs in Alabama, Mississippi, Louisiana, and some parts of Western Florida that met financial formulas detailed in the settlement agreement. The settlement was initially estimated at $8 billion but left uncapped. It is now estimated to exceed $9.6 billion.
Though most thought this would be the end of the saga, just months later BP began to file an onslaught of motions attempting to halt the payout process being conducted by Deepwater Horizon Claims Administrator, attorney Patrick Juneau. BP alleged that payments were being made to fictitious claimants and businesses, for fictitious losses that were not related to the spill. After several hearings, U.S. District Judge Carl Barbier rejected each claim.
BP filed an initial appeal to the Fifth Circuit disputing Patrick Juneau’s method for calculating payments, specifically stating he was applying an incorrect standard for determining business losses. A three judge panel ordered that Judge Barbier reconsider some of the settlement terms regarding calculation of losses for businesses.
BP then filed another appeal, requesting the Fifth Circuit throw out the settlement unless Judge Barbier requires businesses to prove their losses were directly caused by the oil spill. This time, the Fifth Circuit rejected the appeal.
The divided three judge panel affirmed Judge Barbier’s 2012 ruling. The appellate court found that Judge Barbier did not err in failing to determine whether eligible claimants have actually suffered any injury from the spill. The court held that no laws or case precedence requires a district court to safeguard the interests of the defendant, when in most settlements the defendant can protect its own interests at the negotiating table.
BP has now requested the appellate court reconsider its January 10th decision. The company argues in its filing that the Fifth Circuit erred in affirming the district court’s approval of the 2012 settlement. It said the court’s January 10th ruling will force the company to pay out millions of dollars to businesses that were not actually harmed by the oil spill. Lawyers for the company urge that the court should not have upheld Judge Barbier’s certification of the class as it was ill-defined.
Plaintiffs’ lawyers have publically stated that they believe BP undervalued the settlement and how many claimants would be eligible for payment. Accordingly, the embattled giant is now searching for any and all means to escape full payouts under the settlement. Many have questioned the wisdom of BP’s decision to continue to challenge Judge Barbier’s rulings, as he is also handling a separate suit against BP and has wide latitude to assess fines under the Clean Water Act.
Barrett Law PLLC has been involved in much of the litigation stemming from the BP oil spill and has successfully helped many claimants recover from their losses. Though the time for filing a claim for damages for many individuals and businesses has now passed, if you suffered damages from the spill and would like more information concerning your rights, call us today at 1 (800) 707-9577 to schedule a free initial consultation.
