BP won a legal reprieve in its effort to avoid payments to those whose losses were not traceable to the 2010 Gulf of Mexico oil spill, potentially sparing the oil company extra costs.
BP had agreed in 2012 to make payments to those who suffered economic losses as a result of the largest U.S. offshore oil spill.
The company, however, complained that the payout formula worked out by settlement administrator, Patrick Juneau, was too generous and compensates people and businesses that were not harmed.
In March, U.S. District Judge Carl Barbier approved Juneau's evaluation methods. BP contested this approval.
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On Monday, a divided 5th U.S. Circuit Court of Appeals in New Orleans said the district court erred by approving Juneau's formula.