BP asks court to reject some spill claims

By Laurel Brubaker Calkins and Allen Johnson Jr.
Bloomberg News

BP Plc urged a U.S. judge to dismiss hundreds of lawsuits from Gulf Coast residents and businesses seeking economic damages from the worst offshore oil spill in U.S. history.

A lawyer for BP argued today in federal court in New Orleans that spill victims can only sue for economic losses under specific laws governing offshore spills and that lawsuits filed under other statutes should be dismissed. The London-based oil company also said spill victims are obligated to pursue their claims for resolution through a $20 billion trust fund BP established for that purpose before they can sue.

“BP’s position is not that every single claim needs to be dismissed,” Andrew Langan, BP’s lawyer, told U.S. District Judge Carl Barbier at today’s hearing. Claims that have been improperly filed or not yet presented to BP’s trust fund should be dismissed, he said.

More than 4.1 million barrels of crude gushed into the Gulf of Mexico after BP’s Macondo well blew out off the Louisiana coast in April 2010. Thousands of coastal tourism businesses, property owners, commercial fishing interests and seafood processors have sued BP and its contractors in about 450 lawsuits, which are gathered for joint pretrial processing before Barbier.

Earlier this year, BP and its contractors filed court papers outlining positions they contend undercut the oil spill- damages suits on legal grounds.

Environmentalist Arguments

Environmentalists and lawyers for spill victims told Barbier today that none of the economic-damage claims or defendants should be dismissed at this stage of the litigation. They asked him to allow all claims to proceed to trial at the earliest possible date.

—With assistance from Margaret Cronin Fisk in Southfield, Michigan.