BP Settles Suit Over 2 Refinery Deaths

Business Law

The world's third largest publicly traded oil company BP Plc, agreed to settle a lawsuit brought by a woman whose parents died in a Texas refinery explosion, woman's lawyer said.

Though the terms of the agreement were confidential, BP set aside $1.6 billion to resolve the claims.

The London based BP, has acknowledged safety shortcomings at the plant, and settled about 1,000 suits, including all death claims except the two filed by Eva Rowe, 22. She lost both her parents in the explosion and has refused to settle unless BP agrees to change safety procedures and equipment.

Roddy Kennedy, who heads BP's press office in London, said he couldn't comment on the reported settlement. BP will pay money to community groups as part of the settlement, attorney Brent Coon said.

If if the trial had gone forward, BP faced unlimited damages and harm to its reputation. The March 23, 2005, explosion killed 15 and injured hundreds at its Texas City, Texas, refinery led to more than 1,300 suits against BP, a record fine from the U.S. Occupational Safety and Health Administration and a finding by another safety agency that the company endangered workers by cutting costs.

The evidence to be introduced, including an internal study showing the company ignored safety problems at the Texas City refinery, could have produced sizable punitive damages. The trial was set to begin with jury selection today.

Breaking Legal News.com
Sheryl Jones
Staff Writer

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