BP Asking for Restitution from Businesses That Received Settlement Payments

The businesses received payouts from the 2012 settlement, but BP later won the right to further restrict when entities could get payments based on companies’ revenues and expenses and how much they suffered from the spill.

Restitution could involve hundreds of millions of dollars and 790 businesses that were paid by BP as part of a 2012 settlement. The court, however, did not order any repayment, but instead ordered to use a new technique to calculate the correct amount payable.

Attorneys representing a variety of plaintiffs in the case opposed the move. The businesses occupied a larger share, as around $3 billion has been paid to them to compensate for their economic losses.

A three-judge panel of the 5th U.S. Circuit of Appeals will hear arguments at 10:30 a.m. Thursday. However, the court will unlikely to give its ruling immediately.

Eleven workers died on April 20, 2010 when the Deepwater Horizon rig exploded.

Earlier this year, the Britain oil company struck an $18.7 billion deal with the five States’ governments in the Gulf Coast that were impacted by the biggest oil spill.

After the disaster, more than 328,000 claims were filed by individuals and companies claiming damages from the explosion and the resulting oil leakage.

BP plc (ADR) (NYSE:BP) has spent another $14 billion for response, as well as, cleanup apart from penalties of $4.5 billion slapped after the criminal case settlement with the federal government.

Patrick Juneau, the Lafayette lawyer a federal court appointed to oversee the claims programs, released an update Monday (Aug. 31) on the status payments as of July 31.