Ah, well. It was nice while it lasted for BP. Having gained one legal victory from appeals court judges in Louisiana in its battle to contain compensation for the 2010 Deepwater Horizon disaster, it has lost a broader case.
This round in BP’s effort to overturn the class action settlement it originally agreed – on the grounds that it has turned out to compensate many people and businesses that were not actually damaged by the spill – was thrown out by the Fifth Circuit on Friday.
The judges’ ruling (by a two-to-one majority) was simple enough. Read more
Score one for the Louisiana legal system. BP has gained a notable, and rather unexpected, victory in the US appeals court in New Orleans over Patrick Juneau, the administrator of claims for damages relating to the 2010 Deepwater Horizon disaster.
BP went to court over the way Mr Juneau interpreted its settlement with businesses claiming compensation. It argued that he was allowing loose claims by businesses that happened to suffer a dip in revenues after the spill simply because of cashflow anomalies. Read more
If the US Department of Justice does push its accusations of gross negligence against BP to trial, disinterested observers can look forward to a detailed exploration of the oil company’s culture and management.
As I wrote in my first column as FT management editor in 2011, the report issued by Barack Obama’s national commission into the Deepwater Horizon disaster reads like a guide to the challenges of implementing cultural change, fighting complacency, running a collaborative “extended enterprise”, and managing risk. BP’s own 2010 accident investigation report, based on an investigation by Mark Bly, the group’s head of safety and operations, took a far narrower view. There are 69 references to culture in the national commission report, for instance; there are none in BP’s, and the only discussion of management is focused on specific operational issues. Read more