In re: Deepwater Horizon, No. 15-30377 (5th Cir. 2017)Annotate this Case
At issue in this appeal was the computation of economic losses arising out of the BP oil spill and based on the BP Settlement Agreement. The district court approved a policy adopted by the Claims Administrator (Policy 495) that consists of five methodologies to calculate claimant compensation: one Annual Variable Margin Methodology (AVMM) and four Industry-Specific Methodologies (ISMs). The Fifth Circuit held that the AVMM was consistent with the text of the Settlement Agreement, but that the four ISMs were not. The district court erred in approving the ISMs because they required the Claims Administrator to move, smooth, or otherwise reallocate revenue in violation of the Settlement Agreement. However, the ISMs, also required the Claims Administrator to match all unmatched profit and loss statements. Accordingly, the court affirmed as to the AVMM, reversed as to the ISMs, and remanded for further proceedings.