Oil Spill Claims – Ken Feinberg Statistics – August 31, 2010

Kenneth Feinberg gave the Press-Register new figures Monday on the number of oil spill claims that have been paid by the Gulf Coast Claims Facility. As of Monday afternoon (8-31-2010), almost 29,000 people have filed claims. About 1,900 checks have been written for a total of $9.7 million. Feinberg said that forms filed by nearly 20,000 individual workers have been reviewed, and that today each one of them will receive a check or a message telling them what information they need to complete their request for payment.

A spokesperson for the Gulf Coast Claims Facility (GCCF) said that payment statistics will be posted online daily at the GCCF website. The report that was posted on the website early Monday afternoon showed 29,867 claims for emergency advance payments, of which 1,935 have been paid. The total amount paid was $9,767,869.68.

The Washington Independent questioned GCCF spokesperson Amy Weiss about Feinberg’s promise that individual claims would be paid within 48 hours. “The 48 hours, as Ken has said, is 48 hours after the documentation is in.” She added that “every claim has been looked at so far.” Weiss said 88% of the requests were for lost earnings, about 6 percent were for “loss of subsistence use of natural resources,” and 4 percent were for damage to property.

Nearly all of the claimants have filed for emergency payments, which are supposed to cover losses for six months, before a final payment is made. One confusing thing is that there have been 1,358 “final claims” submitted, even though the GCCF isn’t accepting final claims yet. Feinberg appears to be confused by this, too, because the GCCF’s report says “Review underway to determine whether claimant intended to file Final Claim.”

If you filed for a final payment by mistake, there are at least two reasons you may want to withdraw it and submit a temporary claim. First, the final claim isn’t likely to be paid and you may not receive the temporary payment you are entitled to receive. Secondly, a final payment requires you to give up the right to request any further payments from BP, whereas temporary payments allow you to request more money.

If you want to read the rules Feinberg issued for processing requests for payments, we’ve put those online for you to read at Scribd.

Related posts:

Check back here for the latest information on getting paid for oil spill claims, or follow us on Facebook and Twitter. Also, we will soon be launching some new websites with information for people who want help getting paid on oil spill claims.

{ 0 comments }

Oil Spill Claims – 26,000 Claims Filed, Only 1,200 Paid by Kenneth Feinberg’s Gulf Coast Claims Facility.

Kenneth Feinberg, head of the new Gulf Coast Claims Facility, spent the last two months promising everyone who would listen that he would process oil spill claims faster, fairer and more generously than BP. But after Mr. Feinberg took over the claims process on August 23, 2010, some people found that they couldn’t tell any difference. Feinberg admitted at the Southern Governors’ Association meeting on Sunday that his office had received 18,900 claims from individuals, and 7,400 claims from businesses, but had paid only 1,200 individuals.

Feinberg acknowledged that his office’s performance was “not acceptable.” And it’s hard to argue with that assessment. Feinberg has been telling people that individual claims will be paid within 48 hours of receiving documentation of the losses. He’s promised that businesses will be paid within 7 days. But some television and newspaper reports indicate those timetables aren’t being met, and that the GCCF is losing documentation, much as BP allegedly did in the past.

Claimants are also raising questions about the amount of money the GCCF is paying. Feinberg had promised to pay 6 months’ of lost income. That was part of his promise to be “more generous than BP.”  BP had paid only one month’s lost income at a time, and people expected Feinberg’s checks to be much larger. But a Press-Register article Monday reported that the GCCF’s first 1,200 checks averaged only $5,000 each, while BP’s checks had averaged $3,200 each. Feinberg was unable to explain why the GCCF’s checks were so small. People who were expecting checks six times larger than BP’s $3,200 checks had to be disappointed.

Check back here for the latest information on getting paid for oil spill claims, or follow us on Facebook and Twitter.

Related posts: Oil Spill Claims

{ 1 comment }

Feinberg’s Oil Spill Rules Don’t Create Trust in Florida and Alabama Attorneys General

Florida Attorney General Bill McCollum joined Alabama Attorney General Troy King in criticizing BP Claims Administrator Kenneth Feinberg’s new oil spill claims rules today. McCollum issued a press release containing excerpts from a letter he sent today to Kenneth Feinberg. McCollum’s letter condemned the new rules, saying they contradict many of Feinberg’s previous public statements. McCollum wrote: “the current process appears to be even less generous to Floridians than the BP process.” McCollum added “the process appears to have as its primary goal the reduction or elimination of claims, instead of making claimants whole.”

Damning words from Florida’s chief legal officer.

[click to continue…]

{ 3 comments }

Oil Spill Claims – BP Escrow Fund Administrator Ken Feinberg Issues Rules

New BP oil spill trust fund administrator Kenneth Feinberg has been flying around the Gulf states meeting with people and businesses who have lost money due to the oil spill. People at these meetings have expressed anger at the way they have been treated by BP, and Feinberg has tried to distance himself from BP. While Feinberg has said his process will be fairer and faster than BP’s process, he has not provided much specific information about the new rules that will apply. News reports say some people who attended meetings with Feinberg have asked for copies of the rules that will govern the new process, but the rules have not been available until today. In a press release, Feinberg released his Gulf Coast Claims Facility Protocol for Emergency Advance Payments. Feinberg said “These guidelines are the result of many town hall meetings throughout the Gulf, listening to the people affected by this disaster.”

Oil Attorneys Are Offering to File Oil Spill Payment Application and Waive Fee on First Payment

Some oil spill attorneys are offering to file oil spill payment applications free, and they are waiving attorneys’ fees on Feinberg’s first payment (the payment for 6 months of losses). This means that people can get a lawyer to file the paperwork, and at the same time they can pursue a case against BP using the court system. Pursuing BP simultaneously through Feinberg’s processing facility and the court system may be the quickest way to obtain full and fair compensation. I’ll update this post next week to provide a way to contact attorneys offering this service.

[click to continue…]

{ 4 comments }

Government’s Report on BP Oil Spill Challenged by Scientists and Gulf Residents

On August 4, 2010, the White House released a controversial report titled “BP Deepwater Horizon Oil Budget: What Happened To the Oil?” In answer to the question “what happened to the oil,” government scientists suggest:

  • 26% is “residual” oil which is “either on or just below the surface as light sheen and weathered tar balls, has washed ashore or been collected from the shore, or is buried in sand and sediments;”
  • 25% has evaporated or dissolved;
  • 17% was directly recovered from the wellhead;
  • 16% was naturally dispersed;
  • 8% was chemically dispersed;
  • 5% was burned;
  • 3% was skimmed.

[click to continue…]

{ 0 comments }

UPDATED 8-21-2010 |Kenneth Feinberg takes over the processing of all BP claims August 23, 2010. Feinberg released his rules for processing oil spill claims on 8-20-2010, giving rise to immediate criticism by the Attorneys General of Florida and Alabama, oil spill attorneys representing claimants affected by the Gulf oil spill, and residents and business owners on the Gulf Coast. Check out our post on Ken Feinberg’s rules for handling oil spill claims and our post on the Florida and Alabama attorneys generals’ attacks on Feinberg’s proposed oil spill claims rules.

Original article

BP will begin offering one-time payments to people and businesses directly affected by the Gulf oil spill this month, reports The Guardian. In exchange, BP will require those who receive payments to waive their rights to file lawsuits.

“The fund will offer lump sum payments in return for an agreement not to pursue claims in court,” a spokeswoman said. BP also says it will offer the option of emergency payouts of up to six months income without requiring a waiver of the right to file a lawsuit.

The Guardian reports that, privately, BP believes that it will be able to hold its damages well below the $20 billion it has committed to pay into an escrow fund for claimants.

The new procedure offering a one-time payment in exchange for a waiver of the right to sue is undoubtedly a major part of BP’s strategy to limit its liability. The company knows that tens of thousands of Gulf Coast residents and businesses are in severe financial distress, with some near bankruptcy. For those with small losses which aren’t expected to continue over a long period of time, BP’s one-time settlement offer may be very attractive. For people and businesses with large losses, particularly those with losses that are hard to estimate this soon after the spill, it remains to be seen how attractive BP’s new program will be.

Related posts:

{ 0 comments }

The BP oil spill in the Gulf of Mexico has given rise to some of the largest, most complex litigation in U.S. history. There have already been more than 300 lawsuits filed in federal courts, including over 250 filed as proposed class action lawsuits. If the class action lawsuits are certified by a judge as actual class actions, they could include millions of Gulf Coast residents, businesses, and property owners. Defendants in the cases include British Petroleum, Transocean and Halliburton. A ruling is expected in August.

July 29, 2010 – First Hearing Held in all Federal Oil Spill Lawsuits

The Judicial Panel on Multidistrict Litigation (JPML) held a hearing in Boise, Idaho, on July 29, 2010, to determine whether the cases should all be consolidated and, if so, which court should handle the cases. It is almost a foregone conclusion that the cases will be consolidated. The big issue is where the cases will be sent. The defendants have argued the cases should be sent to Houston, Texas. They were joined in their request by Houston attorney Mark Lanier, who represents some of the plaintiffs. Other oil spill attorneys argued the cases should be sent to New Orleans, Mississippi, or Mobile, Alabama. The Justice Department argued that the cases should be sent to New Orleans.

Some interesting statements were made by oil spill attorneys at the hearing today, so we thought this would be a good time to quote some of the statements by oil spill lawyers handling the BP lawsuits for Gulf Coast residents, businesses and property owners.

Oil Spill Attorneys – What Some Are Saying

July 29, 2010 – Boise, Idaho – Statements Made to Judicial Panel on Multidistrict Litigation (JPML)(from Reuters, The New York Times, and the Wall Street Journal).

New Orleans oil spill attorney Russ Herman:

“Our culture rises as a gumbo of Cajuns, Creole, French, German and Spanish,” he said. “All of that is threatened now. This disaster threatens our hope and faith. That’s why New Orleans is the best avenue of justice.”

“We rise out of our myth, our metaphor, our mystery, our seafood and our music, which now is threatened, and the threat of our culture threatens our hope and our faith. You have an opportunity to focus the world on this country, on this disaster, so it won’t happen again. Assist us in our resliiency.”

New Orleans oil spill attorney Allan Kenner: “”If after the Sept. 11 attacks this panel had sent all those cases to Houston or brought in a judge [from elsewhere] to sit in New York, the public would be outraged.”

BP attorney Andrew J. Langan, representing BP, reiterated that his client wants the cases sent to the Southern District of Texas for pretrial proceedings, asserting that “the key witnesses and key documents are by far located in Houston.” Langan told the Panel that, if the cases are sent to New Orleans, BP will argue that Judge Carl Barbier should recuse himself from the cases. Judge Barbier sold his oil stocks shortly after the spill and has refused to recuse himself.

“You are the Superman of the Justice League!” Russ Herman said to W. Mark Lanier, a plaintiffs lawyer who wants the cases heard in Houston, his home. (In an interview, Mr. Lanier noted that he had won many cases against oil giants in Houston, and said, “Houston jurors hate big oil, and think they’re all dirty.”)

Other statements by oil spill attorneys about the BP lawsuits and the JPML hearing (July 29, 2010)(from the Los Angeles Times and The Gazette):

Charlie Tebbutt, an Oregon attorney representing the Center for Biological Diversity in its suit alleging violations of the Clean Water Act, said he is pursuing the maximum penalties against BP and Transocean of $4,300 per barrel of oil spilled into the Gulf waters. He estimates the bill could be $20 billion, “if we can prove gross negligence or willful misconduct, which we expect should be relatively easy to prove in this case.”

“The stakes here are tremendous,” said Georgene Vairo, a Loyola Law School professor of civil procedure and expert in complex litigation. “For a single-event type of incident this is the biggest we’ve ever seen, just in the range of claims, the government and private party actions, the cost of claims, the insurance aspects. It’s just the whole nine yards. It’s huge.” “The facts here are going to be relevant to every single claim. What did they do when they built that pipeline and well? Who did what in terms of maintaining the well over time? Did they do the required inspections?” Vairo said. Once those questions are answered in one case, they can be applied to the rest, she said.

Oil spill attorney Allan Kenner: “We are witnessing nothing short of a collapse of an ecosystem that took tens of thousands of years to create.”

Check back for more quotes from oil spill attorneys in the coming days.

{ 3 comments }

Oil Spill Cleanup Contest Will Award $1 Million Grand Prize

People with oil spill ideas and suggestions should be interested to know that The X PRIZE Foundation today announced the $1.4 Million Wendy Schmidt Oil Cleanup X CHALLENGE. [click to continue…]

{ 0 comments }

Oil Spill Pictures, the Coast Guard, and the First Amendment. A New Excuse for the 65-foot “Safety Zone.”

The government has changed its excuse for the 65-foot “safety zone” announced by the Coast Guard this week. The new excuse? Vandalism. Yes, you read it correctly. Vandalism. It seems strange that Admiral Thad Allen didn’t mention vandalism when he announced the “safety zone.” But the Coast Guard changed its story after an outcry from the media and the public accusing the Coast Guard of trying to prevent oil spill pictures and accurate reporting on the oil spill clean up. People who venture inside the “safety zone” are subject to a $40,000 fine and a Class D felony conviction.

Click here to see oil spill pictures. [click to continue…]

{ 1 comment }

Oil spill pictures suggest a cover-up on Grande Isle – sand being used to cover up the oil.

Grande Isle, Louisiana – July 2, 2010 – Karen Dalton Beninato, writing at NewOrleans.com, asks the question, “Are Grand Isle’s oiled beaches being covered up with sand?” An oil spill picture she took Monday appears to show a dump truck dumping sand on the beach at Grande Isle. She wasn’t actually allowed to go onto the beach: access to the beach depended upon being taken there by an escort, and the escort happened to be “too busy.” That’s a shame, because Monday was the last day for civilians to walk the beach for a while without fear of being arrested, charged with a felony, and fined $40,000.

[click to continue…]

{ 0 comments }