A recent NLJ story, “$7.8 Billion BP Settlement Wins Judge’s Preliminary OK,” reports that a federal judge gave preliminary approval to a settlement between BP PLC and individuals and businesses that suffered economic harm or medical costs associated with the Deepwater Horizon oil spill – and clarified that BP, and not the claimants themselves, would pay the lawyers who spearheaded the litigation.  In approving the deal, estimated to be worth $7.8 billion, U.S. District Judge Carl Barbier rejected nearly a dozen objections by parties including Halliburton Energy Services Inc., which is a remaining defendant in the MDL over the spill, and the states of Mississippi and Florida.

“The Court preliminarily and conditionally finds, for settlement purposes only, that the terms of the Proposed Settlement are sufficiently fair, reasonable, adequate, and consistent with governing law,” Barbier wrote.  “At this stage, the Settlement Agreement appears fair, has no obvious deficiencies, doe not improperly grant preferential treatment to the Class Representatives or to segments of the Class, and does not grant excessive compensation to attorneys.”

He noted some unusual terms in the deal – primarily, that claims be paid ahead of final settlement approval and that BP, not the class members, would be responsible for paying the plaintiffs steering committee’s attorneys fees and costs, referred to as “hold back” fees.  In a subsequent order on May 3, Barbier clarified that no “hold back” fees would be deducted from settlement payments.  Plaintiffs would still be responsible for paying their individual attorneys.