The U.S. 5th Circuit Court has asked that the Texas Supreme Court make a ruling on whether oil giant BP had adequate insurance coverage prior to the Deepwater Horizon oil spill.
Osler McCarthy, a staff attorney for public information at the Texas Supreme Court, said that when BP asked its insurance company, to pay up, its insurer told them they weren't covered.
McCarthy said the court will be examining if the primary coverage was enough for BP to be covered for the pollution damage to the Texas Coast or if the company should have purchased additional umbrella policies.
BP is fighting the settlement it agreed to last summer that let the oil company avoid thousands of potential lawsuits over the 2010 Gulf of Mexico oil spill.
Just after the spill, when oil was still gushing into the Gulf, BP touted the $20 billion it set aside for claims. But now it says the claim process is corrupt and is hoping a court will overturn the settlement that established the claims fund.
Ending the claims would mean stopping a well-oiled machine.