There seems to be a great deal of conflicting information about the current status of the Gulf Coast spill compensation fund, the status of oil spill claims being made and whether those affected business need to start filling out paperwork or calling oil spill lawyers. While the Obama and other federal government officials and BP tout the oil spill compensation as a great victory over the oil giant in their fight for the Gulf Coast residents legal rights. But recent comments by Alabama Attorney General Troy King show grave concern over the fairness of the oil spill claims process for their residents. Kenneth Feinberg, the White House’s appointee to oversee the oil spill compensation and damages fund, has had to try to defend the conditions of the compensation fund to the Attorneys general of the affected states in the last week. Alabama’s and Mississippi’s Attorneys General have been the most vocal; they and other state’s chief lawyers weren’t consulted until after the 9th draft of the agreement between British Petroleum and the federal government. Troy King, Alabama’s Attorney General, called the deal “collusive (with BP) at best and contrary to the public interest at worst”.
Kenneth Feinberg has held press conferences and town hall meetings telling businesses and individuals they don’t need oil spill lawyers to receive money from the BP oil spill compensation fund, but do they need an attorney to make sure they aren’t signing their rights away for that check? One of the most significant concerns in the claims process is that those receiving compensation funds will be forced to sign a waiver against future legal claims. Even if the gushing well is stopped in the next few days, the total extent of the damage for major industries, such as fishing, won’t be known for 3 – 5 years, maybe more. The claims process created by the Obama administration requires a release of liability against any claims from damages occurring after the affected party has received their settlement.
In the first few days after his appointment, Feinberg stated that if people enter the claims process and then decide to retain oil spill lawyers and file a lawsuit he hasn’t done his job. That commitment is admirable, but how will his version meet the requirements of those devastated by the oil spill? That greatly depends on what those expectations are; for those thinking about just getting enough money to pay immediate bills, the answer is yes. For those that are thinking longer term, there are still too many unknowns. It’s not going to be enough just to stop the oil; the clean up needs to be complete before economic recovery can even be changed. Feinberg has been adamant in recent days that within months of the government taking over operation of the compensation fund, they will be making full settlement offers. For those in the fishing, property rental or tourism industries how can they possibly know the extent of the damage to their business without knowing what next year’s season will be like? And if receiving that early claims settlement waives legal rights even against damages that have already occurred but can’t yet be measured, just exact whose job has Mr. Feinberg done, British Petroleum’s or the victims’?
Comments on this entry are closed.