[Update 8-21-2010] The most current information on this topic as of 8-21-2010 can be found at:
- Ken Feinberg – New Oil Spill Claims Rules Blasted by Attorneys General
- Oil Spill Claims Rules Released by Feinberg
[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:
- Gulf oil disaster claims administrator testifies before House committee
- BP claims czar: Not everyone will get paid
- $20 billion fund might not pay losses related to tourism
- For Gulf victims, mediator with deep pockets and broad power.
- IRS may tax BP claims payments.
- Alabama Gov. Bob Riley and Ken Feinberg outline plans for faster payments.
- Ken Feinberg interview with Neil Cavuto on Fox News.
- Feinberg ramps up compensation fund.
- Feinberg says $20 billion may not be enough.
- Oil Spill Attorney Visits Jackson
- Feinberg says he will err on the side of BP claimants.
- BP claims process gets mixed reviews.
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
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