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:
{ 1 comment }
Yo disene el tubo jigante que tapo el liqueo de petroleo y ahora. Me inoran. Y not quieren pagar. Por mi diseno y idea de 1junio de2010 que fue el que bp USO. Para paral el liqueo del gorfo de Mexico. Que Los que esta pasando es que not al leye en este continente USA not es legar cojer idea. De otra persona ello sabe bp que yo fui el de la idea. Y ahora me quieren enganar. Not es possible por que yo tengo prueva. Thank