BP Faces Hundreds of Civil Suits For Denying Oil Spill Claims

Posted in BP British Petroleum,Deepwater Horizon,Government,Gulf Coast,Louisiana Maritime News,Maritime Lawsuits on May 13, 2011

NEW ORLEANS, LA – Hundreds of lawsuits against British Petroleum Plc (BP) have been consolidated in Federal Court in New Orleans alleging that the company is refusing to accept liability for losses due to the BP oil spill following the Deepwater Horizon disaster in 2010.

Overhead view of the BP oil spill well head in the Gulf of Mexico following the Deepwater Horizon disaster in 2010. Photo credit: Reuters

A $20 billion oil spill fund was established following the disaster and is being administered by Ken Feinberg. Hundreds of civil lawsuits have arisen from individuals and businesses living and working along the Gulf Coast who have suffered financial harm as a result of the oil spill.

The lawsuits were filed against BP on the grounds that BP is denying their claims. The civil suits have been consolidated in U.S. District in New Orleans under Judge Carl Barbier.

Just this week, BP filed a response to the lawsuits in which they say that their liability is “limited to damages directly caused by a covered oil spill and that indirect or derivative losses are not compensable”. Lawyers for BP are saying that claims are being denied according the filing under the US Oil Pollution Act and that some of the claims associated with the BP oil spill are without merit.

An article at The Telegraph website reported on the story:

Hundreds of civil suits from businesses and individuals situated along the Gulf Coast that allege the spill caused them financial harm have been consolidated in New Orleans. The US government has also filed a civil suit for damages, while The Department of Justice is conducting a criminal investigation.

The civil suits filed by businesses and individuals along the Gulf coast claim that the BP oil spill caused significant financial damage.

BP is having to deal with a number of legal issues connected to the oil spill. Currently, they are under criminal investigation by the Department of Justice (DOJ) and the federal government has also filed a civil suit for damages.

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