BP Claim Appeals: Wait Further or Start the Legal Battle Now

Posted by on Feb 6, 2015 in Oil Spills | 0 comments

After the April 2010 British Petroleum (BP) oil spill along the Gulf of Mexico, the giant oil firm entered into a settlement contract that agrees to pay businesses and individuals for whatever oil spill-related financial losses they can show they suffered from. Since this agreement was signed BP has already made about $2.3 billion settlement payments. BP, however, stopped in its tracks of satisfying settlement claims after it felt and realized that the agreement has most likely fallen to wrong interpretations as Patrick Juneau, the court-appointed administrator of the settlement fund, considered any economic loss as authentic even without any proof that such loss is, indeed, the effect of the oil spill.

Due to the misinterpretation that BP is convinced to have occurred, the oil firm made repeated court appeals, all of which have been denied. After the last court rejection during the 4th quarter of 2014, BP still expressed its intent to pursue its case with unwavering resilience, plus its right to appeal any claims that exceeded $25,000, which it claimed was stipulated in the settlement agreement that it signed.

While BP may have the legal right to pursue what it believes is just, others see the firm’s move as nothing more than a delaying tactic in paying the rest of the $7.8 billion in estimated compensation payments. This delaying tactic, meanwhile, has placed even those who really suffered economic losses at an indefinite waiting period, a wait that has only led to more damaging losses to some, forcing them to declare bankruptcy and close down the business altogether.

The website of Williams Kherkher law firm says that business firms essentially have two options: wait more for no one knows how much longer or start the legal battle now. One danger of waiting further, though, is that the statute of limitation (relating to compensation) that was set by the Oil Pollution Act specifies only three years. In April 2015, it will already be five years since the spill occurred.

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