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Gulf 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 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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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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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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Gulf Oil Spill Sparks Massive Offshore Drilling Protest

At 12:00 p.m. local time today, protesters around the globe went to hundreds of beaches and parks, joining hands to take part in Hands Across the Sand to protest offshore drilling. The movement was created in February, 2010, by Florida restaurant owner Dave Rauschkolb, who became an activist against drilling as a result of his love of surfing. [click to continue…]

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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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