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BP Oil Spill Litigation Continues

by Michael J. Evans on November 17, 2011

in Attorneys,Legal,Oil Spill Lawsuits

Gulf Oil Spill Lawsuits Continue – Litigation Update for Alabama Lawyers on Nov. 18, 2011

I spent today at a Legal Strategies Conference in Montgomery, AL. The Beasley Allen law firm, headquartered in Montgomery, hosted the conference. Beasley Allen is one of several law firms that has made a huge commitment of time and money to representing businesses and workers who suffered financial harm due to the BP oil spill.

Lawyers who represent plaintiffs in lawsuits against corporations are often criticized by corporations which want to evade the financial responsibility for their unlawful conduct. BP is attempting to do that here, and without law firms willing to commit substantial resources to represent their clients, small businesses and workers harmed by the Gulf oil spill would simply be at the mercy of British Petroleum.

Rhon Jones, head of the Toxic Tort Section at Beasley Allen, will be speaking about the BP lawsuits tomorrow. I’ll try to follow up soon with a post based on the latest information provided by Jones.

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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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ProPublica, Oct. 4, 3:12 p.m.

Even as the U.S. Environmental Protection Agency calls for more research into the long-term effects of the chemical dispersants BP used in the Gulf, representatives of BP and the National Oceanic and Atmospheric Administration have reached out to local schools to “dispel myths” about dispersants and subsurface oil, according to recent reports in the Houma Courier and the Tri-Parish Times. (We first noticed the Tri-Parish Times piece via TreeHugger.)

BP and NOAA appear to be doing demonstrations for local schools using a 10-gallon fish tank full of water, some cooking oil, and some dishwashing detergent to simulate the properties of oil and the effects of dispersants.

The Houma Courier quoted NOAA science support coordinator Gary Ott as telling the children, “Oil floats. See, we’ve tested it.”(The oil-floats argument is also what then-BP CEO Tony Hayward said when first confronted with evidence of underwater oil plumes this summer.)

According to the two reports, Ott had the children try to use eyedroppers to suck up the oil, simulating the inefficiency of skimmers. He had them use paper towels to simulate absorbent booms.

And then he applied dishwashing detergent to the floating oil to break it down, simulating dispersants. Though he acknowledged the dispersed oil doesn’t disappear and could hurt some fish species, Ott told the children that the chemicals were broken down within weeks by microbes, the Courier reported. He also assured the children that Gulf seafood was safe to eat.

Scientists, as we’ve reported, have found thick layers of oily sediment on the Gulf sea floor. And more recently, researchers at Oregon State University found abnormally high levels of carcinogenic chemicals in water off the coast of Louisiana, Mother Jones noted.

We’ve asked both NOAA and BP for comment regarding the demonstrations. A BP spokeswoman told me she was working on putting together a response, but has not yet provided one. We’ve asked specifically what “myths” about dispersants the company was trying to dispel.

In any case, here’s how the company explained the outreach to the Tri-Parish Times:

“The primary purpose [of the demonstration] is to inform and educate students on the methods used to clean up the oil in the Gulf and the wetlands and marshes,” Janella Newsome, BP media liaison said in a press release. “It’s also to dispel myths about dispersants, subsurface oil and seafood safety.” According to BP representatives, it won’t be the last demonstration. “This is the first session of many going on,” Charles Gaiennie, a BP representative said at Oaklawn’s library last week. “We are starting here in Terrebonne Parish with eighth grade because they are the first of school age kids that have a defined science class. We wanted to reach out to schools that are near communities that have been directly impacted by the oil spill, so Terrebonne was a good choice. There’s a lot of information that’s out there isn’t current or accurate.”

During one demonstration, reported the Tri-Parish Times, a BP representative asked the students questions about the oil spill. Students who answered correctly received a BP hat or pen as a prize.

-END OF PROPUBLICA ARTICLE-

Is It Time To Contact An Attorney About Your BP Claim? Click Here For Free Information.

Comment by Michael J. Evans of BPOilNews.com: As we get closer to the trials of the lawsuits against BP, look for lots more BP “demonstrations to dispel myths” within the area from which the jurors will be selected. Big corporations learned years ago that a little “re-education” of the jury pool can pay dividends if they’re hauled before a jury.

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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.

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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.

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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…]

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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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Oil Spill Suggestions: What Should the President Do?

McKay Coppins, writing in Newsweek, asked presidential historians to speculate how the past five U.S. presidents (going back to Jimmy Carter) would have handled the Gulf oil spill if they were in office. Although nobody really knows what how other presidents would have handled the disaster, it makes for an interesting discussion. We asked in an earlier post, “Will President Obama Follow the Lead of Jimmy Carter, or John F. Kennedy?” Our suggestion for the President has been to take action, and put the federal government in charge of the oil spill cleanup.

Given the scope of this catastrophe, affecting millions of U.S. citizens and businesses, this is no time for the President to rest his hopes on British Petroleum. BP has proven that (a) it can’t be believed, and (b) it is not up to the challenge. The truth is that there is only one entity that has both the incentive and the resources to meet the challenge of the Gulf oil spill, and that is the United States of America. [click to continue…]

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