A FUND set up by BP plc to compensate victims of the worst US oil spill froze payments until it gets clarification on a court order to set aside money to cover plaintiffs’ legal fees.
The court in Louisiana said the Gulf Coast Claims Facility should withhold 6 per cent of payments for the fees, according to a statement on the website of the independently run fund.
The facility is asking the court about any further obligations and whether the order is retroactive for previous claims, it said.
“The GCCF has temporarily frozen all payments to claimants and the issuance of any payment determination letters” from December 30th, David Pitofsky, a lawyer representing the facility, wrote in a letter posted on the website.
“The GCCF seeks to confirm its interpretation of the order with the court.”
BP had paid $7.4 billion to individuals, businesses and government entities affected by the oil spill by December 23rd, the company said on its website. It is setting aside $20 billion for victims and to pay for environmental damage after the disaster in the Gulf of Mexico in 2010. The district court in Louisiana made the order on December 28th.
David Nicholas, London-based spokesman for BP, declined to comment on the decision, saying it was a matter for the fund.
BP has reserved $41 billion to deal with liabilities that might emerge from the spill. Other involved parties include Halliburton, which may have to face costs of up to $2 billion.– (Bloomberg, Copyright The Financial Times Ltd: 2012)
