BP oil spill payments stalled in wrinkle over fees

NEW ORLEANS (AP) — Damage payments from the compensation fund for BP's massive oil spill in the Gulf of Mexico have been stopped temporarily because officials need time to comply with a court order to set aside money to pay hundreds of lawyers.

The Gulf Coast Claims Facility, which was set up to handle claims against BP PLC, said Tuesday that payments would be halted to comply with a Dec. 28 order by U.S. District Judge Carl Barbier.

The order requires that 6 percent of payments approved on and after Nov. 7, 2011, go to lawyers affiliated with a steering committee approved by the federal court to spearhead oil spill litigation for plaintiffs.

A statement from the claims facility said the fund needs time to reformulate payments.

Fund officials have asked the judge to clarify his order. For now, the claims facility said it would assess the 6 percent fee against settlements reached after Dec. 29 but asked Judge Barbier whether it should assess the fee for thousands of settlements paid between Nov. 7 and Dec. 29.