💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UK government lends hand to BP in U.S. Gulf oil spill rulings

Published 09/07/2014, 10:05 PM
UK government lends hand to BP in U.S. Gulf oil spill rulings
BP
-

(Reuters) - The British government has urged the U.S. Supreme Court to review appeals court rulings against BP Plc (L:BP) over a 2010 Gulf of Mexico oil spill that produced one of the largest class actions in American history.

In a friend of court brief, the UK government said lower court rulings raise grave international concerns by undermining confidence in the "vigorous and fair resolution of disputes."

The filing said BP, which has "gone to great lengths to restore the Gulf Coast", was now being required to pay large sums to others who were not injured by the Deepwater Horizon oil spill.

The London-based oil major is appealing lower court decisions within the last year that it believes wrongly require it to compensate claimants who suffered no injuries from the spill.

The British government said treatment meted out to BP undermined the fairness and trust necessary for international commerce.

The United States and Britain conduct more than $200 billion in trade each year, and UK businesses are responsible for 17 percent of all foreign direct investment in the United States, according to the filing.

In a separate statement, BP said the government's petition emphasizes the importance of fair and consistent application of law.

BP argued that the Fifth Circuit's decisions, if allowed to stand, will fundamentally alter class action law and discourage companies from settling complex cases.

It also said the decisions will likely discourage companies from investing in the United States "if companies are exposed to liability for losses they did not cause.

Separately, a Louisiana court ruled last week that BP was "grossly negligent" and "reckless" in the spill, a move that could add nearly $18 billion in fines to more than $42 billion in charges.

BP last week said it would appeal that ruling.

© Reuters. File photo of fire boat response crews battling the blazing remnants of the offshore oil rig Deepwater Horizon off Louisiana

(This story has been refiled to to add dropped letter "s" in paragraph 9)

(Reporting by Aashika Jain in Bangalore; Editing by Eric Walsh)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.