US Court rules in favour of BP by halting payouts over the Gulf of Mexico spill

03 Dec, 2013

It emerged that BP have been making payments to firms falsely claiming losses when they had experienced no harm.

The Gulf of Mexico spill in 2010 killed 11 workers, releasing around four million barrels of oil into the sea.

Firms have been gaining payouts for the past 12 months, by taking advantage of a settlement deal BP signed.

An injunction to stop such payments has been implemented and means that businesses not directly affected by losses of the spill will have their proceedings halted for the time being.

According to the BBC, a BP spokesman said: “If properly implemented by the district court, the Fifth Circuit’s order will help return the settlement to its original, intended and lawful function- the compensation of claimants who sustained actual losses that are traceable to the Deepwater Horizon Accident.”

BP agreed in 2012 to make payouts to those businesses genuinely suffering losses due to the spill.

So far BP have paid out nearly £2.3 billion, and have faced criminal and civil charges of up to £25.8 billion.

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