Settlement may loom as civil trial delayed
By Emily Pickrell
Feb. 26, 2012 Updated: Feb. 26, 2012 9:23 p.m.
NEW ORLEANS — The massive civil trial over the Deepwater Horizon was delayed by one week as plaintiffs lawyers and BP continue negotiations on a settlement.
The federal trial was slated to kick off this morning until the judge overseeing the case on Sunday ordered the postponement. BP and the Plaintiffs' Steering Committee, which represents businesses and individuals, issued a joint statement.
"BP and the PSC are working to reach agreement to fairly compensate people and businesses affected by the Deepwater Horizon accident and oil spill," the statement said. "There can be no assurance that these discussions will lead to a settlement agreement."
BP, widely viewed as the main defendant at the trial where billions of dollars are at stake, faces claims by the U.S. government, several states and the individual plaintiffs. BP did not say if was in talks with Justice Department, which had no comment.
"The judge must believe there is a strong possibility of a settlement in order to postpone the trial for a week," Blaine LeCesne, a tort law professor at Loyola University who has closely followed the case, said Sunday.
"It could either include a global settlement or a partial settlement, but would probably include the government at this point. There would be little reason for BP to continue with a trial that would still include all that potentially damning evidence against them."
U.S. District Judge Carl Barbier of New Orleans is overseeing the litigation in a non-jury trial in a case that consolidates scores of legal claims.
BP owned the well, which blew out and spewed an estimated 5 million barrels of oil into the Gulf of Mexico. Halliburton cemented it, and Transocean owned and operated the Deepwater Horizon drilling rig that exploded.
Eleven workers died.
BP CEO Bob Dudley has said the company would welcome a settlement it considered fair. Some companies already have reached partial or complete settlements.
Weatherford International, which provided the float collar used in the final cementing of the well, settled with BP last year in exchange for protection against any compensatory claims, such as harm to the local economy. Barbier then dismissed its case as to any remaining claims.
MOEX Offshore 2007, a unit of Japan's Mitsui that owned a 10 percent share in the Macondo well, settled with BP and with federal and state governments.
Cameron and Anadarko Petroleum settled with BP for compensatory claims, but still could be liable for civil penalties under the Clean Water and Oil Pollution acts.
emily.pickrell@chron.com