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BP cannot claw back 'excessive' gulf spill payments | BP cannot claw back 'excessive' gulf spill payments |
(about 1 hour later) | |
BP will not be able to recoup any payments it made in compensation for the Gulf of Mexico oil spill, a judge has ruled. | BP will not be able to recoup any payments it made in compensation for the Gulf of Mexico oil spill, a judge has ruled. |
The oil giant has challenged claims amounting to hundreds of millions of dollars, which it says were inflated and illegitimate. | The oil giant has challenged claims amounting to hundreds of millions of dollars, which it says were inflated and illegitimate. |
But a federal judge has ruled that the company must stand by the payments. | But a federal judge has ruled that the company must stand by the payments. |
BP had argued that nearly 800 business had received excessive payments under a flawed funding formula. | BP had argued that nearly 800 business had received excessive payments under a flawed funding formula. |
"BP disagrees with today's decision and will appeal it," company spokesman Geoff Morrell said. | "BP disagrees with today's decision and will appeal it," company spokesman Geoff Morrell said. |
"We asked the court, as a matter of equity and fairness, to order the return of excessive payments." | "We asked the court, as a matter of equity and fairness, to order the return of excessive payments." |
No clawback | No clawback |
One construction company hundreds of miles inland was paid $13.2m (£8m). BP says it deserved no more than $4.8m. | |
A company selling animals and animal skins received $14m more than it should have, according to BP. | A company selling animals and animal skins received $14m more than it should have, according to BP. |
However, US District Judge Carl Barbier in New Orleans ruled that the compensation already paid could not be clawed back. | However, US District Judge Carl Barbier in New Orleans ruled that the compensation already paid could not be clawed back. |
The courts have previously agreed that the formula used to calculate compensation payments was flawed and had resulted in over-generous payouts. | The courts have previously agreed that the formula used to calculate compensation payments was flawed and had resulted in over-generous payouts. |
BP had hoped that would mean that the payments made before the rules were tightened could be revisited. | BP had hoped that would mean that the payments made before the rules were tightened could be revisited. |
But the original compensation deals included an "individual release" clause ensuring there could be no future court action to alter the payments. | But the original compensation deals included an "individual release" clause ensuring there could be no future court action to alter the payments. |
The company has paid more than $42bn so far since the disaster in 2010, which killed 11 men and spread oil over seafood grounds, coastal marshes and beaches. | The company has paid more than $42bn so far since the disaster in 2010, which killed 11 men and spread oil over seafood grounds, coastal marshes and beaches. |
BP originally expected the payouts to reach $7.8bn. | BP originally expected the payouts to reach $7.8bn. |
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