Monday, October 18, 2010

BP (NYSE:BP) Reneging on $75 Million Cap?

In a feisty exchange between a BP (NYSE:BP) lawyer and lawyer for plaintiffs before U.S. District Judge Carl J. Barbier, BP attorney Don Haycraft implied BP could seek to hide behind the $75 million liability cap law under the Oil Pollution Act.

Originally BP had said they wouldn't seek to protect themselves under the cap.

Plaintiffs' attorney Steven Herman responded saying: "We're shocked over here to hear the defendants now bring up this $75 million cap. We were under the impression [the cap] was waived."

Barbier said the American public did have the impression BP was going to waive the cap, paving the way for higher liability payments.

Haycraft responded saying "I know that BP has paid lots and lots and lots" of money at this time in relationship to the oil spill.

When pressed by Herman if BP is prepared to pay all legitimate claims only up to $75 million, Haycraft said he was "not prepared to answer that question in this context."

According to Kenneth Feinberg, who administers the claimant portion of the BP compensation fund, the oil giant has paid out $1.4 billion in claims so far.

No comments: