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Gulf Coast Oil Spill Claims – November 2011 Update on BP Claims Filed With Gulf Coast Claims Facility

Michael J. Evans — Thu, 03 Nov 2011 14:10:05 +0000

BP Claims Are Backlogged

As I’ve mentioned before, I’m an attorney who represents a number of clients with BP oil spill claims. Unfortunately, Kenneth Feinberg and the Gulf Coast Claims Facility have turned out to be a big disappointment to many people with BP claims for money lost due to the Gulf oil spill.

Gulf Coast Claims Facility Performance Falls Short of Promises Made by Kenneth Feinberg

The Gulf Coast Claims Facility, or GCCF, appears to be almost hopelessly bogged down reviewing hundreds of thousands of Gulf oil spill claims. The GCCF has gotten rid of several hundred thousand oil spill claims, but these were almost all quick, small settlements. Some people who took these oil spill settlements were in such terrible financial shape that they felt they didn’t have any choice other than to accept the offer made by the Gulf Coast Claims Facility. It has become clear that the GCCF is not going to fully and quickly pay BP claims, as Kenneth Feinberg promised the people of the Gulf Coast.

Gulf Oil Spill Claims by Businesses Are Being Greatly Delayed

People with substantial business claims for Gulf oil spill losses may want to consider making final demands to the Gulf Coast Claims Facility. Under the Oil Pollution Act, when an oil spill occurs, the “responsible party” is required to make an offer to a person who lost money because of the spill. The responsibility party is required under the Oil Pollution Act to make the offer within 90 days of receiving a final demand on an oil spill claim.

BP is certainly a “responsible party” for the Gulf oil spill. Kenneth Feinberg and the Gulf Coast Claims Facility are acting on behalf of BP. Although there are no guarantees that a person or business which files a final claim will get a response within 90 days, it is a course of action that you may wish to discuss with your attorney.

Oil Spill Losses By Businesses Can Be Documented By Forensic Accounting Firms

I’m working with an alliance of law firms representing people and businesses with BP claims. Our alliance is headed by Texas attorney Brent Coon of Brent Coon & Associates (BCA). BCA has offices in most of the Gulf Coast states. I’ve been impressed with the job BCA and the other firms in our group are doing. We’ve hired forensic accounting firms which are experienced in calculating business losses and providing evidence to prove the amount of those losses.

Many people and businesses use tax preparers or accounting firms which are familiar with tax issues and deductible expenses. Some who are familiar with tax laws may not be aware of all the losses that a business has suffered and will continue to suffer in the future due to the BP oil spill. If you believe you have suffered substantial losses but don’t have a person who can calculate those losses, you may wish to consider talking with a forensic accounting firm or a law firm handling BP claims.

Bankruptcy Issues

I want to make one final point. Some people have lost their businesses or jobs due to the Gulf oil spill. They may be considering filing bankruptcy due to their destitute financial condition. These people may wish to ask their bankruptcy attorney to consider filing a BP claim for them, or they may wish to ask their attorney to talk with a law firm which handles BP claims. Some may be forced to file for bankruptcy. But it doesn’t seem fair that BP should be allowed to put people and businesses in bankruptcy without paying for the damage its oil spill caused.

Oil Spill Claims Update | 29,000 Claims Filed, 1,900 Paid

Michael J. Evans — Tue, 31 Aug 2010 18:57:32 +0000

Oil Spill Claims – Ken Feinberg BP Fund 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.

Ken Feinberg BP Fund 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.

BP Claims | Kenneth Feinberg BP Fund Off to Slow Start on BP Claims

Michael J. Evans — Tue, 31 Aug 2010 03:57:46 +0000

BP Claims – 26,000 Claims Filed, Only 1,200 Paid by Kenneth Feinberg BP Fund

Kenneth Feinberg, head of the new Gulf Coast Claims Facility, spent the last two months promising everyone who would listen that he would process BP claims faster, fairer and more generously than BP. But after Mr. Feinberg took over the BP 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.

Kenneth Feinberg BP Fund Performance “Not Acceptable”

Kenneth 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 Gulf Coast Claims Facility is paying. Kenneth 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, and updates on the Kenneth Feinberg BP Fund, or follow us on Facebook and Twitter.

Related post: Kenneth Feinberg BP Fund Blasted

Kenneth Feinberg BP Fund – New Oil Spill Claims Rules Blasted by AGs

Michael J. Evans — Sat, 21 Aug 2010 02:08:07 +0000

Kenneth Feinberg BP Fund – Oil Spill Rules Don’t Create Trust in Florida & Alabama AGs

Florida Attorney General Bill McCollum joined Alabama Attorney General Troy King in criticizing the Kenneth Feinberg BP Fund 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.

Alabama AG Troy King’s letter indicates Feinberg has refused to address issues raised by all the Gulf Coast attorneys general. According to the Birmingham Business Journal, King’s letter says,“Based on the lack of any forward progress made in your latest draft, as well as your actions and public statements since we met, it appears that the concerns of the Attorneys General and those of the citizens of our States have fallen on deaf ears.” (You can read the BP Claims Rules here).

BP Claims: Does the Kenneth Feinberg BP Fund Intend to Limit Them?

It doesn’t create confidence in the new BP claims process when two conservative, business-friendly Attorneys Generals attack the rules so quickly and so vehemently. Shortly after Feinberg, a Boston attorney, was appointed administrator of the $20 BP claims fund, he embarked on a whirlwind tour of the South to try to sell the plan to Gulf Coast residents and businesses. He openly criticized BP, and promised to be much faster and more generous to claimants. Now that the Attorneys General of Florida and Alabama have accused him of being less generous than BP, many people might doubt Feinberg’s sales pitch. It is particularly troubling that McCollum believes Feinberg’s primary goal is “the reduction or elimination of claims.”

Some who attended Feinberg’s town hall meetings agreed that he could talk a good game. But after their bad experiences with BP claims administrators, some Gulf Coast residents said they wanted to see something in writing before they decided whether to trust Kenneth Feinberg. Based upon the discrepancies between his statements and the actual rules, Mr. Feinberg may learn that he hasn’t earned anyone’s trust. By the end of Friday, news coverage reflected that the rules were being greeted with skepticism (see “New guidelines could rule out many oil spill claims“).

BP Claims: You Can Simultaneously File a Claim and Pursue a Lawsuit A Lawsuit Against BP

A number of law firms are offering free evaluation of oil spill losses. Some oil spill attorneys are offering to file the paperwork with the Kenneth Feinberg BP fund, while simultaneously pushing their clients’ claims through the court system. This lets claimants avoid the delay that will occur if claimants wait to hire an attorney until they see how much Feinberg offers them for a final settlement.

People on the Gulf Coast again find themselves faced with economic uncertainty and a decision to be made: can I afford to put my trust in Kenneth Feinberg?

What do you think about the new Kenneth Feinberg BP Fund rules? Let us know by posting a comment.

Oil Spill Claims | Kenneth Feinberg BP Fund Issues Rules

Michael J. Evans — Fri, 20 Aug 2010 21:30:19 +0000

Oil Spill Claims – Kenneth Feinberg BP Fund 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 Ken Feinberg has tried to distance himself from BP. While Feinberg has said Kenneth Feinberg BP Fund will be fairer and faster than BP’s claims process, Feinberg 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.”

Kenneth Feinberg BP Fund – Some Oil Spill Attorneys Are Waiving Fee on First Payment

Some oil spill attorneys are offering to file oil spill payment applications with the Ken Feinberg BP Fund, 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 with the Kenneth Feinberg BP Fund, 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 soon to provide a way to contact attorneys offering this service.

One advantage that the court system has over the Kenneth Feinberg BP Fund is that the court system may allow people and businesses to recover punitive damages. Feinberg has said he will not pay punitive damages from the $20 billion escrow fund. Another reason that letting a lawyer handle your case in the court system is that you can simultaneously try to recover money from BP, Transocean, and Halliburton. People who sue multiple negligent defendants are often able to collect more than they would if they had only sued one defendant. People who accept a final payment from Feinberg’s fund will not be allowed to collect money from Transocean or Halliburton, according to The Wall Street Journal.

People who live or own businesses which are not on (or very near) the beach may not be paid by Feinberg. The New York Times reported that “An ice cream parlor or a golf course miles from the affected shore but along the main highway headed to the beach will probably not be eligible, the documents indicate.”

Alabama Attorney General Criticizes Kenneth Feinberg Oil Spill Claims Rules

Alabama Attorney General Troy King sent a letter today to Kenneth Feinberg criticizing the new rules. King says the rules appear to be part of BP’s strategy to limit payments to those damaged by the BP oil spill. According to a Birmingham Business Journal article, King wrote Feinberg, “Based on the lack of any forward progress made in your latest draft, as well as your actions and public statements since we met, it appears that the concerns of the Attorneys General and those of the citizens of our States have fallen on deaf ears.”

Some business publications have added their own criticisms to those of AG King. Portfolio.com says, “With that kind of uncertainty hanging over the Gulf, Feinberg and his colleagues may have a tough sell getting businesses to take what they can now, rather than waiting to see what the real damage is—and what the courts decide it is.”

After this article was originally posted, Florida Attorney General Bill McCollum weighed in on the new rules issued by the Kenneth Feinberg BP Fund. You can read what the Florida Attorney General had to say about Feinberg’s oil spill claims rules here.

Read the Full Text of Feinberg’s Rules

We’ve got a link here to the full text of the BP Oil Spill Payment Rules. Also, if you’re interested, we’ve uploaded the forty-page trust agreement that governs Feinberg’s escrow account. You can view the oil spill claims trust by clicking on this link: BP Oil Spill Claims Trust Agreement.

What’s Your Opinion of the Kenneth Feinberg BP Fund Oil Spill Claims Rules?

Please share your opinion about the new rules in a comment. Do you think the new rules are fairer than the rules BP followed? Do you have confidence in Kenneth Feinberg? Are you going to seek to recover your losses through the court system at the same time that you file with Feinberg’s office?

Feinberg | Oil Spill Claims | More About the $20 Billion BP Claims Fund

Michael J. Evans — Thu, 01 Jul 2010 05:01:54 +0000

[Update 8-21-2010] The most current information on this topic as of 8-21-2010 can be found at:

[Update 8-3-2010.] Kenneth Feinberg, administrator of the $20 billion BP claims fund, is expected to begin processing claims August 23, 2010. Pro Publica reported today that BP has stopped processing some claims, leaving them to be handled by Feinberg’s office. [End update.]

BP Claims Fund Administrator Feinberg: Some People Won’t Be Paid

Information about the $20 billion BP claims fund has been leaking out each day since the it was announced, but what do you need to know if you have lost money due to the Deepwater Horizon disaster? The flow of information about the escrow fund has been much slower than the oil gushing from the Deepwater Horizon oil leak. In fact, it’s still hard to get a handle on exactly which losses will be paid, and how much people can expect to receive. Although Kenneth Feinberg, the new BP claims administrator, has been holding meetings to explain the new process, information has sometimes seemed to change from one meeting to another.

The administrator of the $20 billion BP claims fund established to pay victims of the oil leak, attorney Ken Feinberg, and his assistant, Michael Rozen, have put out small bits of (sometimes contradictory) information, and oil spill attorneys have put out information as the have learned details. Here are a few facts plus a list of articles containing information current as of July 1, 2010.

Mental Health Claims Probably Won’t Be Paid

A July 27, 2010, Pro Publica article reported that Ken Feinberg, oil spill claims administrator, told Congress on July 21 that claims for mental illness and distress are not likely to be paid. “If you start compensating purely mental anguish without a physical injury — anxiety, stress — we’ll be getting millions of claims from people watching television,” Feinberg said. “You have to draw the line somewhere. I think it would be highly unlikely that we would compensate mental damage, alleged damage, without a signature physical injury as well.”

Oil Spill Attorneys Fees Won’t Be Paid From BP Claims Fund

We have learned that oil spill attorneys will not receive attorneys fees from the BP claims fund. We’ve also learned that people accepting payments from the fund will not be paid punitive damages.

Here is a list of some of the most informative articles about the BP claims fund administered by Kenneth Feinberg:

The House Judiciary Committee said last Friday that BP had paid only 12% of requests for payment that had been filed at that time. Administrator Ken Feinberg says the new system will be in place in 30-45 days. (Note: I was present at an Oil Spill Attorney Conference a week ago when Feinberg’s assistant administrator, attorney Michael Rozen, said that it would take 90 days to get the BP claims fund “up and running.”)

Feinberg has said that people who refuse offers will not be prohibited from filing lawsuits BP. At this point, some are planning to submit a request for payment from the fund, while going forward with plans to litigate against BP if the amount offered by the fund is insufficient. We will post more information, including more oil spill attorney information, as it becomes available.

Oil Spill Attorneys Answer Questions

Oil spill attorneys give insight to BP claims process

BP Oil Spill Claims Update

Michael J. Evans — Fri, 28 May 2010 17:46:18 +0000

Oil Spill Claims – May 28, 2010

Oil spill claims filed by residents of the Gulf Coast have left most people disappointed in their attempts to get British Petroleum to pay their legitimate claims for loss of income. Although BP is accepting and paying some oil spill claims (Coast Guard information on filing claims with BP here), it is paying too little, too late. It’s also failing to give people and businesses information about how much they will be paid, and when they will be paid, in the future. If BP acts the way Exxon did with the Valdez incident, it will be necessary for many Gulf Coast residents and businesses to file lawsuits in order to be treated fairly.

In an earlier article about oil spill claims, we reported that British Petroleum had paid 3,461 people who lost money due to the Gulf oil leak. BP’s payments in Florida and Alabama averaged just over $300.00 per oil spill claim. Today, BP told CNN they have paid 27,000 claims at an average of about $1296.30 each. Although the average payment has gone up, there is still a lot of frustration for fishermen, other workers and businessmen who are losing money due to the Gulf oil disaster. Here’s the CNN video:

If you or your business has lost money due to the Gulf oil leak, you need to document the amount of your losses in as much detail as possible. This documentation can help you prove your oil spill claim to BP and, if you aren’t able to get a voluntary payment, it can help you collect your losses in a lawsuit. Keep your tax returns, W-2 forms, 1099 forms, financial statements, profit and loss statements, etc. for the past five years. The better your documentation, the better your chance of getting paid.

Oil Spill Lawyers

If you were injured or lost money due to the Gulf disaster, you can get more information about oil spill claims against BP by signing up for our newsletter and filling out the “lawsuit information” box. Oil spill lawyers have already filed dozens of oil spill lawsuits, and undoubtedly many more will be filed. Check back here for updated information about the payment of claims by British Petroleum, and oil spill lawsuits to recover money for damages caused by the oil spill.

Oil Spill Claims | How much is BP paying on claims arising out of the Gulf oil spill?

Michael J. Evans — Thu, 20 May 2010 15:41:40 +0000

Oil Spill Claims:

Update June 5, 2009: BP has announced that it will begin paying a second month of lost income claims.

Articles:

Louisiana to BP: Show me the money. (CNN-June 5, 2010)

BP says it will pay “legitimate” claims “for as long as it takes.” (AFP June 5, 2010)

BP refuses to give state of Louisiana access to database of payments. (TheAdvertiser.com June 4, 2010)

Original article: British Petroleum has made public announcements that they are paying claims, and I have seen them publicly announce that they have paid several thousand. I may have missed it, but I have not seen BP talk about the average amount of the claims they are paying. That’s understandable, because we now know it is paying very little. According to Alabama Attorney General Troy King, The company has spent about $600,000 to pay 2,000 claims in Alabama. That’s about $300 per claim. In Florida, the company has made about 1,461 payments in Florida totaling $442,000. Average payout: $302.53.

When BP talks about its willingness to settle claims, remember that the law requires it to do this–it’s not doing something that’s not required by law. No one should be reluctant to ask British Petroleum to compensate them for all their losses.

People and businesses which have been damaged by the oil spill need to keep good records documenting economic losses. British Petroleum is likely to require documentation before it pays a claim, and if it becomes necessary to go to trial to obtain payment, you will need evidence to support your claim for damages. You can use tax returns, financial statements, balance sheets, profit and loss statements, W-2 forms, 1099 forms, and possibly other documents that verify income and business expenses.

Join BP Oil News on Facebook, and follow our updates on Twitter @BPOilNews.

Oil Spill Claims | BP CEO waffles on paying economic damages

Michael J. Evans — Wed, 05 May 2010 22:16:02 +0000

Oil Spill Claims

In a private meeting with Florida Sen. Bill Nelson, BP CEO Tony Hayward refused to commit to pay all damages from Deepwater Horizon oil spill, according to a New York Times article. Nelson and Hayward met at Hayward’s request in Nelson’s Senate office. After the meeting, they both addressed the media. Hayward, speaking first, said that the $75 million damage cap contained in the Oil Pollution Act (OPA) would “inevitably be exceeded.” Hayward then said “All legitimate claims will be paid.” When asked by a television reporter to clarify his statement, Hayward walked away without explanation. Nelson then disclosed that Hayward had refused, in their private meeting, to commit to paying all damages caused by BP’s oil spill. “When I said ‘Will you be responsible for the economic damages?’ he said, “That’s something we’ll have to work out in the future,’” Nelson said.

Meanwhile, the White House is suggesting that BP may be guilty of misconduct that would leave BP responsible for all damages caused by the oil leak. White House Press Secretary Robert Gibbs said “Understand this — there is — they are fully liable for cleanup and recovery costs per the Oil Pollution Act of 1990. The cap is not in place if somebody is found to be either grossly negligent, conduct willful — involved in willful misconduct, or in violation of federal regulations. As you know, there’s an investigation ongoing as to the cause behind the spill.”

In other developments, The Dallas Morning News reported that a senior BP executive told members of Congress that BP’s Deepwater Horizon oil well could spill as much as 60,000 barrels a day of oil, more than 10 times the current estimate of the flow.

Oil Spill Claims Update

Update August 2010: BP has agreed to waive the $75 million cap and has committed to pay $20 billion into a trust to be administered by Kenneth Feinberg. You can find updated claims information in the related posts, below.