BP Wins Ruling by Federal Judge in New Orleans

BP will not have to pay for the economic losses suffered by other businesses when the federal government shut down deep-water drilling in the wake of the company’s huge 2010 oil spill, according to U.S. District Judge Carl Barbier in New Orleans.

The six-month drilling ban had been ordered by the Obama administration in order to prevent another such disaster from happening. Judge Barbier issued his ruling in a lawsuit brought by six companies involved in offshore drilling. The judge also said only damages caused directly by the spill could be recovered under the Oil Pollution Act.

The ruling indicated the damages sought by the six firms were not the direct result of the oil discharge. There was no comment from BP which, according to a recent BP regulatory filing, resulted in a company cost of $55.5 billion.