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BP wins Macdondo spill compensation appeal
by Danielle Levy on Oct 03, 2013 at 07:51
BP has been successful in a legal appeal to limit its compensation settlement for the 2010 Macondo Deepwater Horizon disaster.
A favourable ruling from a US court on Wednesday night approved an injunction to stop payments to businesses that had not 'experienced actual injury traceable to loss' from the Deepater Horizon accident. It is hoped the ruling will allow BP to dampen the cost of the settlement from the predicted $9.6 billion, which some had forecasted could be as high as $15bn.
In response to the ruling, the oil major said in a statement: 'BP is extremely pleased with today's ruling by the US Court of Appeals for the Fifth Circuit setting aside the claims administrator's interpretation of the business economic loss framework in the settlement agreement BP reached with the Plaintiffs' Steering Committee last year. Today's ruling affirms what BP has been saying since the beginning: claimants should not be paid for fictitious or wholly non-existent losses. We are gratified that the systematic payment of such claims by the claims administrator must now come to an end.'
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