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BP oil spill

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.

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by Abrahm Lustgarten ProPublica, Oct. 26, 2010, 11:32 a.m.

Jeanne Pascal turned on her TV April 21 to see a towering spindle of black smoke slithering into the sky from an oil platform on the oceanic expanse of the Gulf of Mexico. For hours she sat, transfixed on an overstuffed couch in her Seattle home, her feelings shifting from shock to anger.

Pascal, a career Environmental Protection Agency attorney only seven weeks into her retirement, knew as much as anyone in the federal government about BP, the company that owned the well. She understood in an instant what it would take others months to grasp: In BP’s 15-year quest to compete with the world’s biggest oil companies, its managers had become deaf to risk and systematically gambled with safety at hundreds of facilities and with thousands of employees’ lives.

“God, they just don’t learn,” she remembers thinking.

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by Marian Wang ProPublica, Oct. 29, 2010, 12:43 p.m.

On October 28, the government’s oil spill panel released a letter alleging that Halliburton knew of potential flaws in its cementprior to the Deepwater Horizon blowout. That same spill commission, in a little-noticed report by the New Orleans Times-Picayune, had earlier this week criticized government inspectors for their lack of knowledge about how to safely cement an offshore well.

“When we asked about cementing and centralizers, they said very freely, ‘We don’t know about that stuff; we have to trust the companies,’” the commission’s co-chairman, William Reilly, told the Times-Picayune. “All they get is on-the-job training. It really is fairly startling, considering how sophisticated the industry has become.”

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By Sasha Chavkin ProPublica, Oct. 25, 2010, 11:38 a.m.

Claimants seeking compensation for the Gulf oil spill who can demonstrate financial need may have their claims “escalated”–selected for prompt processing–by paymaster Kenneth Feinberg’s operation. But some applicants are experiencing long waits even after being told their claims had been expedited. Eleven claimants told ProPublica that despite their claims being escalated, they are still waiting for a decision weeks later. Six of these claimants have been waiting for more than a month.

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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.

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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.

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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.

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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…]

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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.

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Deepwater Horizon Oil Spill Suggestions: Prize May be Awarded for Oil Spill Solution.

June 28, 2010 – Francis Beland, a Vice-President at the XPrize Foundation, announced today that the group may offer a $10 million XPrize for a smart idea for an oil spill solution to the Deepwater Horizon oil leak. In the past the XPrize people have offered similar awards for coming up with awards for private spaceflight or ultra-efficient automobiles. [click to continue…]

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