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BP settles in bid to avoid costly court case
UK-based global oil and gas company BP has agreed a settlement with a worker who was injured in the 2010 Gulf of Mexico disaster, opening the door for more claims to be settled and therefore averting a trial to determine damages and fines.
Deepwater Horizon: fanning flames of compensation
Oleander Benton, 53, sustained neck, back and shoulder injuries in the explosion that rocked the Deepwater Horizon rig, where she worked as a cook. It is understood that Ms Benton has settled with other parties apart from BP,including rig-owner Transocean.
Ms Benton’s lawyer, Anthony Buzbee of Houston-based law firm Buzbee Law, sued on behalf of 19 other rig-workers, with Ms Benton’s being the last case to be resolved. The Benton settlement figure was not disclosed, but Mr Buzbee claimed total compensation for the claimants he represents has topped the $150 million mark.
Complex claims
With the trial set to begin on Monday, a report in London’s Daily Telegraph newspaper suggests that the oil giant will look to settle all claims related to the April 2010 disaster. Analysts have implied that, although settlements are likely, dealing with complex claims in a short time could be troublesome.
Fadel Gheit, an analyst at New York-based investment bank Oppenheimer & Co, told the Bloomberg news agency: ‘There could be very important decisions this week.’ And Jason Kenney, an analyst at Banco Santander, added: ‘We can't really read across anything with certainty... but this implies that a settlement is possible and perhaps more likely for others.’
Huge fines
BP is also facing huge fines under the US’s Clean Water Act, with amounts set to be decided at the trial. A major issue is that maximum fines can be almost four times higher if negligence is proved – although BP has always denied that it was negligent in this case – which could affect company’s attempts to settle at what it considers an acceptable level.
The Benton deal came shortly after Moex, a minority partner in the well, agreed a $90m settlement with the US Department of Justice, with £70m of that arising through penalties under the Clean Water Act.
Ms Benton’s lawyer, Anthony Buzbee of Houston-based law firm Buzbee Law, sued on behalf of 19 other rig-workers, with Ms Benton’s being the last case to be resolved. The Benton settlement figure was not disclosed, but Mr Buzbee claimed total compensation for the claimants he represents has topped the $150 million mark.
Complex claims
With the trial set to begin on Monday, a report in London’s Daily Telegraph newspaper suggests that the oil giant will look to settle all claims related to the April 2010 disaster. Analysts have implied that, although settlements are likely, dealing with complex claims in a short time could be troublesome.
Fadel Gheit, an analyst at New York-based investment bank Oppenheimer & Co, told the Bloomberg news agency: ‘There could be very important decisions this week.’ And Jason Kenney, an analyst at Banco Santander, added: ‘We can't really read across anything with certainty... but this implies that a settlement is possible and perhaps more likely for others.’
Huge fines
BP is also facing huge fines under the US’s Clean Water Act, with amounts set to be decided at the trial. A major issue is that maximum fines can be almost four times higher if negligence is proved – although BP has always denied that it was negligent in this case – which could affect company’s attempts to settle at what it considers an acceptable level.
The Benton deal came shortly after Moex, a minority partner in the well, agreed a $90m settlement with the US Department of Justice, with £70m of that arising through penalties under the Clean Water Act.
