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UPDATE 2-BP wins right to appeal some Gulf spill damages claims

Fri, 08th May 2015 23:18

(Adds comment from BP)

By Jonathan Stempel

May 8 (Reuters) - A U.S. federal appeals court said onFriday BP Plc deserves the right to appellate review ofsome damage claims awarded to people and businesses inconnection with the 2010 Gulf of Mexico oil spill.

The decision by the 5th U.S. Circuit Court of Appeals in NewOrleans could help BP limit its payout to victims of theexplosion of the Deepwater Horizon drilling rig, which killed 11workers and caused the largest U.S. offshore oil spill.

BP originally expected to pay $7.8 billion to resolve claimsunder a 2012 settlement, but by late April it had boosted itsestimate to $10.3 billion, according to a regulatory filing.

About $5.13 billion has been paid out so far to 63,597claimants, according to a website maintained by claimsadministrator Patrick Juneau.

In its appeal, BP complained that rules adopted by U.S.District Judge Carl Barbier compromised its right to appealawards he approved and which the company did not like to the 5thCircuit.

Writing for the appeals court, Judge Fortunato Benavidessaid BP deserved that right to appeal because it did notexpressly waive it.

"Where a settlement agreement does not resolve claims itselfbut instead establishes a mechanism pursuant to which thedistrict court will resolve claims, parties must expressly waivewhat is otherwise a right to appeal from claim determinationdecisions by a district court," the judge wrote.

"The point at which a party seeks the district court'sdiscretionary review is the point at which further review bythis court becomes a possibility."

The 5th Circuit separately rejected BP's appeal of awards tothree non-profit groups. Lawyers for spill victims accused BP ofappealing the awards as a means to relitigate the entiresettlement.

Samuel Issacharoff, a lawyer for the victims, declinedimmediate comment.

BP spokesman Geoff Morrell said the company is pleased withthe ruling on appeals of individual claims determinations.

BP is awaiting a decision from Barbier assessing penaltiesunder the federal Clean Water Act over the spill.

London-based BP has already taken $43.8 billion in pre-taxcharges for clean-up and other costs.

The cases are In re: Deepwater Horizon, 5th U.S. CircuitCourt of Appeals, Nos. 13-30843, 13-31296, 13-31299, 13-31302. (Reporting by Jonathan Stempel in New York. Editing by LeslieAdler and Andre Grenon)

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