BP Settlement to be Reviewed
Posted: Monday, November 4th, 2013 at 2:31 pm
When the massive 2010 BP oil spill took place, thousands of people were affected. Seafood restaurants were forced to shut down due to a lack of product. Sea animals were harmed and poisoned by the oil. Residents on the Gulf still remain concerned that they may suffer from adverse health effects as a result of the oil spill.
One year ago, BP lawyers and Gulf Coast residents and businesses sought approval of a settlement from a federal judge. The settlement was aimed at compensating those who were harmed by the 2010 BP oil spill.
The settlement was first approved by U.S. District Judge Carl Barbier. The settlement is a multibillion-dollar that would compensate victims. However, BP is now attempting to back out of the settlement. A few months after the settlement was approved by Judge Barbier, BP claimed that the settlement was being misinterpreted by the judge. BP is now concerned that it will have to pay excessive funds to businesses that may file bogus claims to improve their profitability.
Currently, thousands of payments have been made to over 38,000 people and businesses. The claims amount to over $3.7 billion. There could be thousands of additional claims filed in the next few months. There is no cap on the amount that BP may pay out to those who have been negatively impacted by the oil spill. BP has estimated that it will likely pay about $7.8 billion to resolve claims for businesses and individuals harmed by the oil spill.
As BP lawyers began to make objections to claims being filed by businesses, BP has now refused to provide an exact amount for the claims that may be paid out. BP has stated that it can not longer estimate how much money it will put toward restoring businesses and individuals on the Gulf Coast.
BP’s current objections are only aimed at businesses filing claims. BP has yet to object to claims filed by individuals. The claims being filed by businesses also concern the profitability of the businesses prior to the BP oil spill and after the spill occurred. BP claims administrator Patrick Juneau has stated that some businesses may be manipulating their revenue figures.