BP PLC has filed a petition with the U.S. Supreme Court appealing the 5th U.S. Circuit Court of Appeal’s decision to uphold the Deepwater Horizon oil spill class action settlement even though the Class purportedly includes a large number of claimants who have not suffered any injury from the 2010 Gulf coast oil spill.
“The question presented is whether the court of appeals erred in holding—in conflict with the Second, Seventh, Eighth, and D.C. Circuits—that district courts can … certify classes that include numerous members who have not suffered any injury caused by the defendant,” BP wrote.
Although it agreed to the Deepwater Horizon settlement back in April 2012, BP took issue with court-appointed Claims Administrator Patrick Juneau’s interpretation of the Class. The dispute resulted in a payment freeze to allow Juneau to clarify his methods for determining which claimants were eligible for payment under the class action settlement. In March, a divided three-judge panel from the 5th Circuit upheld the BP oil spill class action settlement, finding that BP had ultimately agreed to language in the deal that allowed claimants to receive business economic loss payments without showing their losses stemmed from the 2010 oil spill. The appellate court subsequently denied BP’s request to have the full panel of judges hear its appeal.
BP has continued aggressively fighting the oil spill class action settlement, arguing that Juneau’s interpretation allows businesses and individuals who did not actually suffer losses stemming from the oil spill to receive payments. In its petition to the Supreme Court, BP argues that it provided “unrebutted record evidence” that Juneau awarded “hundreds of millions of dollars to thousands of entities whose purported losses were not fairly traceable to the spill.”
“[Juneau] has already awarded more than $76 million to entities whose losses had nothing to do with the spill, as well as an additional $546 million to claimants that are located far from the spill and who are engaged in businesses whose revenues and profits bear no logical connection to the spill and thus cannot plausibly allege a causal nexus,” BP argued. “The Fifth Circuit’s authorization of awards untethered to any injury caused by BP exposes BP to significant losses for claims that it never agreed to pay,” the oil giant continued.
The Supreme Court previously denied BP’s plea for an emergency injunction halting the distribution of awards from the Deepwater Horizon oil spill class action settlement.
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The Deepwater Horizon Oil Spill MDL is In re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico on April 20, 2010, Case No. 2:10-md-02179, in the U.S. District Court for the Eastern District of Louisiana.
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17 thoughts onBP Appeals Oil Spill Class Action Settlement to Supreme Court
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