This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2013/oct/03/bp-us-court-appeal-ruling-deepwater-horizon-oil-spill

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
BP welcomes US court of appeal ruling on Gulf of Mexico oil spill payouts BP welcomes US court of appeal ruling on Gulf of Mexico oil spill payouts
(about 2 hours later)
BP has secured a victory in its US battle to limit payouts over its 2010 Gulf of Mexico oil spill, in a move which could save the company billions of dollars.BP has secured a victory in its US battle to limit payouts over its 2010 Gulf of Mexico oil spill, in a move which could save the company billions of dollars.
The British oil company welcomed a ruling by the US court of appeals which will force a rethink on how compensation claims related to the disaster will be assessed.The British oil company welcomed a ruling by the US court of appeals which will force a rethink on how compensation claims related to the disaster will be assessed.
The supreme court also ordered that payments must be stopped to people who did not suffer "actual injury traceable to loss" from the spill until cases have been properly heard and decided through the judicial process.The supreme court also ordered that payments must be stopped to people who did not suffer "actual injury traceable to loss" from the spill until cases have been properly heard and decided through the judicial process.
BP was the biggest FTSE 100 riser in early trading in London on Thursday, with shares up almost 2%.BP was the biggest FTSE 100 riser in early trading in London on Thursday, with shares up almost 2%.
The rig explosion killed 11 people and caused damage to those earning a living from fishing and tourism related businesses along the coast.The rig explosion killed 11 people and caused damage to those earning a living from fishing and tourism related businesses along the coast.
But BP has persistently argued that the formula for judging claims was too generous, resulting in payments to people who had not actually suffered from the explosion, including businesses who were located far inland but still claiming economic loss. Circuit judge Edith Brown Clement said: "The district court had no authority to approve the settlement of a class that included members that had not sustained losses at all, or had sustained losses unrelated to the oil spill, as BP alleges." But BP has persistently argued that the formula for judging claims was too generous, resulting in payments to people who had not actually suffered from the explosion, including businesses who were located far inland but still claiming economic loss.
Circuit judge Edith Brown Clement said: "The district court had no authority to approve the settlement of a class that included members that had not sustained losses at all, or had sustained losses unrelated to the oil spill, as BP alleges."
The company had set aside $7.8bn (£4.8bn) for compensation claims but by July this year the figure had risen to $9.6bn. Claims administrator Patrick Juneau said that so far about $3.69bn has been paid out in compensation. BP has already incurred more than $42bn of charges for cleanup costs, fines and compensation related to the spill.The company had set aside $7.8bn (£4.8bn) for compensation claims but by July this year the figure had risen to $9.6bn. Claims administrator Patrick Juneau said that so far about $3.69bn has been paid out in compensation. BP has already incurred more than $42bn of charges for cleanup costs, fines and compensation related to the spill.
BP said in a statement on Thursday: "[The] ruling affirms what BP has been saying since the beginning: claimants should not be paid for fictitious or wholly non-existent losses.BP said in a statement on Thursday: "[The] 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.""We are gratified that the systematic payment of such claims by the claims administrator must now come to an end."
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.Our editors' picks for the day's top news and commentary delivered to your inbox each morning.