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* Settles claims for economic losses and property damage * Does not cover separate medical benefits settlement * BP expects to pay $7.8 billion to settle class actionclaims By Terry Baynes Dec 21 (Reuters) - A U.S. judge on Friday gave finalapproval to BP Plc's settlement with individuals andbusinesses who lost money and property in the 2010 Gulf ofMexico oil spill. The order only addressed the settlement of economic andproperty damage claims, not a separate medical benefitssettlement for cleanup workers and others who say the spill madethem sick. BP has estimated that it will pay $7.8 billion to settlemore than 100,000 claims in the class action litigation. U.S. District Judge Carl Barbier initially approved the dealin May, but held a "fairness hearing" in November to weighobjections from about 13,000 claimants challenging thesettlement to resolve some of BP's liability for the worstoffshore oil spill in U.S. history. London-based BP's Macondo well spewed 4.9 million barrels ofoil into the Gulf of Mexico over a period of 87 days. Thetorrent fouled shorelines from Texas to Alabama and eclipsed the1989 Exxon Valdez spill in Alaska in severity. Lawyers for some affected parties had objected to the deal,reached in March between BP and lawyers representing plaintiffsranging from restaurateurs, hoteliers, and oyster men who lostmoney from the spill. They argued that some claimants would beunderpaid or unfairly excluded. But in a 125-page order approving the settlement, Barbiercalled the deal "fair, reasonable and adequate," citing the lownumber of class members who objected or opted out. BP welcomed the approval order in a statement, adding thatthe settlement resolves the majority of economic and propertydamage claims stemming from the accident. "Today's decision by the Court is another important stepforward for BP in meeting its commitment to economic andenvironmental restoration efforts in the Gulf and in eliminatinglegal risk facing the company," BP said. Separate from the class action claims, BP has been locked ina year-long legal battle with the U.S. government and Gulf Coaststates to settle billions of dollars in civil and criminalliability from the explosion. In a settlement with the U.S. government announced lastmonth, BP agreed to pay $4.5 billion in penalties and pleadguilty to felony misconduct. The government also indicted thetwo highest-ranking BP supervisors aboard the Deepwater Horizonrig during the disaster, charging them with 23 criminal countsincluding manslaughter. The class action case is In Re: Oil Spill by the Oil Rig"Deepwater Horizon" in the Gulf of Mexico on April 20, 2010,U.S. District Court for the Eastern District of Louisiana, No.10-2179.