BP Reaches Massive Settlement From Gulf Oil Spill
In a surprising development this evening, The Associated Press reports that BP and a committee representing a selection of Plaintiffs from the Gulf Oil Spill in 2010 have reached a settlement, however details regarding the exact amount have not been released. U.S. District Court Judge Carl Barbier (who will rule over the proceedings without a jury) stated that the trial has been postponed once more, as a result of this development. The trial, which was supposed to begin Monday, now has no set date.
The judge also stated that the settlement would require several changes to be made with the current plan for the oil spill trial, provided this settlement goes through. This is just one of many groups within the lawsuit, including the Federal Government, as well as other private parties and businesses.
Ultimately, the forthcoming trial will determine whether London-based BP should get help from the other firms involved in paying the $26 billion in costs associated with the disaster. According to Businessweek.com, “A $14 billion deal with Gulf businesses and property owners has been proposed,” though there was no mention of whether this is the deal that has been agreed upon.
According to the Associated Press, “The main targets of litigation resulting from the explosion and spill were BP, Transocean, cement contractor Halliburton Co. and Cameron International, maker of the well’s failed blowout preventer. BP, the majority owner of the well that blew out, was leasing the rig from Transocean.” Not only are these companies being sued by the government, individuals, and local businesses that suffered, they are also being sued by each other. In one lawsuit that is still pending, BP is suing Transocean for over $40 billion in damages.
With the impending trial upon BP (although it apparently will no longer take place on Monday), do you think that what BP is offering is enough? Or is $14 billion (or even the proposed $26 billion) too little to compensate for the U.S.’s worst oil spill in history?
