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November 4, 2013

Review of Gulf Oil Spill Fund Begins

A federal appeals court is set to hear objections to the multibillion gulf oil spill settlement, the Associated Press reports. BP says the administrator of the fund is misinterpreting the terms of the settlement, forcing it to pay out inflated and, in some cases, non-existent claims.

Last month, a court agreed with BP, saying that the fund should have halted some payments during an investigation into the claims process. The court found the case involved “serious legal questions” that needed to be reviewed.

All this comes after an investigation found evidence of impropriety by some of the lawyers working for the claims fund. “On myriad levels, the court has an interest in cleaning up this mess,” James Varney writes in the New Orleans Times-Picayune. “For one thing, dangerous precedents can be set that would further diminish Louisiana’s already shaky reputation as a place where civil defendants can expect a level field.”

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