BP is meeting its commitment to Gulf Coast communities by paying legitimate claims stemming from the Deepwater Horizon accident
BP began paying compensation for legitimate claims for damages within weeks of the Deepwater Horizon accident. Through the Gulf Coast Claims Facility and the Court Supervised Settlement Program (CSSP), as well as programmes administered by the company, BP had paid $11 billion in claims and settlements to individuals and businesses as at 31 December 2013.
The CSSP, which has paid out $3.9 billion since it began operating, is handling payments as per the agreement reached with the Plaintiffs’ Steering Committee in 2012 to resolve the substantial majority of legitimate economic loss and medical benefits claims stemming from the accident.
Through programmes administered by the company, BP has paid out $431 million to businesses and individuals since 2010. This includes $35.5 million paid out since the CSSP began operating in June 2012. The BP Claims Program is open to claimants who wish to file economic and property damages claims and fall into one of three categories: individuals and businesses that are not class members; individuals and businesses that are class members, but exercised their legal right to timely opt out of the class settlement; and individuals and businesses that are class members but wish to pursue claims that are expressly reserved to them pursuant to the agreement, to the extent such claims may fall within the Oil Pollution Act.
Public Report - data as of 31 January 2014
|Total paid – Individual and business claims||$11,081,348,128|
|Total paid – Government||$1,464,085,062|
|Total paid – Other1||$328,905,384|
|1Includes payments for tourism, seafood marketing and testing, behavioral health and 2010 contributions|
Legal action regarding business economic loss claims
As part of its monitoring of payments made by the court-supervised settlement programme for the economic and property damages settlement, BP identified and disputed claims that appeared to result from an incorrect interpretation of the settlement by the claims administrator.
There have been various court rulings on this, including the meaning of the causation requirements of the settlement agreement.
In December 2013, the district court in New Orleans ruled that for the purposes of determining business economic loss claims, revenues must be matched with expenses incurred by claimants in conducting their business even where the revenues and expenses were recorded at different times.
The court also ruled that the settlement agreement did not contain a causation requirement beyond the revenue and related tests set out in an exhibit to that agreement. The court of appeal confirmed this ruling and BP is considering further appeal options. There is currently a temporary injunction on business economic loss claims offers and payments, and the timing of when this will be lifted will be affected by the status of any such appeal by BP.
Further information and contact details
Court Supervised Settlement Program
Economic & Property Damages: 1-866-992-6174
Economic TTY: 1-888-584-7624
Medical TTY: 1-800-877-8973
BP Claims Program
Claim forms may be submitted as follows:
BP Claims Program
P.O. Box 330919
Houston TX 77233-0919
By Email: Scanned forms can be sent to email@example.com
By Fax: 1-866-542-4785