Ken Feinberg, the new administrator handling legal claims from the victims of the Gulf said on Sunday that the no sue rule was his idea not BP's (NYSE:BP). Anyone receiving a settlement payout from the compensation fund, gives up their right to sue the company individually.
Feinberg was very clear that he would be far more generous in payments of funds than any court would be. "It is not in your interest to tie up you and the courts in years of uncertain protracted litigation when there is an alternative that has been created," said Feinberg. He continued, "I take the position, if I don't find you eligible no court will find you eligible."
Some of the guidelines have changed, like now the closer you are geographically to the oil spill location, the more likely you are to receive compensation. "I'm going to have to draw some tough lines," said Feinberg. He added that the most "problematic" claims will be from those in the tourism business.
Showing posts with label legal Claims. Show all posts
Showing posts with label legal Claims. Show all posts
Monday, August 23, 2010
Wednesday, August 18, 2010
BP (NYSE:BP) No Longer Accepting Negligence Claims
Jim Hood, Mississippi's Attorney General said that he has yet to decide either way if he will file a state lawsuit against BP (NYSE:BP), because of the damage they have suffered from the oil spill. Hood said, "We're in no hurry to file any litigation."
He said that he is taking the time to fully review potential claims. He is looking for damages caused by the spill. As well as the chemical dispersant used and it's possible long term effects. BP's statics show that Mississippi has filed a total of 9,600 "actionable" legal claims. Only 6,050 of these claims are still being reviewed, that's 63 percent.
On Wednesday August 23rd, BP will no longer be accepting new negligence claims. Kennith Feinberg, the administrator appointed by the government will be taking over and handling all legal claims from that point on.
While BP says they have received a total of 24,493 claims from Mississippi and paid out close to $29.5 million to the state. Hood said that according to the company's statistics, of the 1,062 from rental property owners, a total of 363 were paid. While 213 claims were made by restaurant owners and only 53 were paid out, and 30 of 695 claims were filled for boats.
He said that he is taking the time to fully review potential claims. He is looking for damages caused by the spill. As well as the chemical dispersant used and it's possible long term effects. BP's statics show that Mississippi has filed a total of 9,600 "actionable" legal claims. Only 6,050 of these claims are still being reviewed, that's 63 percent.
On Wednesday August 23rd, BP will no longer be accepting new negligence claims. Kennith Feinberg, the administrator appointed by the government will be taking over and handling all legal claims from that point on.
While BP says they have received a total of 24,493 claims from Mississippi and paid out close to $29.5 million to the state. Hood said that according to the company's statistics, of the 1,062 from rental property owners, a total of 363 were paid. While 213 claims were made by restaurant owners and only 53 were paid out, and 30 of 695 claims were filled for boats.
Monday, August 16, 2010
BP (NYSE:BP) Has Already Paid Alabama $240 Million
While BP (NYSE:BP) does not normally comment on individual legal claims against them. The company wanted to make sure that the public knows how much money they have already paid out to Alabama for oil spill recovery costs.
The company says they have already paid out $240 million to mitigate the impact in Alabama. The amount does not include costs directly related to the spill, such as the Unified command response, skimmers, boom, and removal operations.
BP spokeswoman, Dawn Patience stated that the amount does include $87 million that was paid to out of work fisherman to serve in spill response rolls. Another $81 million has went towards claims already paid out. While $50 million went to the state and $22 million to tourist grants.
Patience said that the company recently sent out almost $8,000 letters to people who had filed claims with the company but remained outstanding, most had no documentation. The recipients of the letters were invited to workshops held last week, only about 300 people attended.
The company says they have already paid out $240 million to mitigate the impact in Alabama. The amount does not include costs directly related to the spill, such as the Unified command response, skimmers, boom, and removal operations.
BP spokeswoman, Dawn Patience stated that the amount does include $87 million that was paid to out of work fisherman to serve in spill response rolls. Another $81 million has went towards claims already paid out. While $50 million went to the state and $22 million to tourist grants.
Patience said that the company recently sent out almost $8,000 letters to people who had filed claims with the company but remained outstanding, most had no documentation. The recipients of the letters were invited to workshops held last week, only about 300 people attended.
Monday, August 2, 2010
BP (NYSE:BP) Offering One Time Payouts on Legal Claims
There has been many legal claims already filed and paid by BP (NYSE:BP). This month the company plans on beginning to settle their liabilities, there is a cost though to those who take "the deal." Anybody that chooses to take the lump sum payout will have to sign a document stating they will not pursue any further legal litigation against BP.
The company believes the lump sum pay off will help to limit their liability and put a cap on the amount they are required to pay. This sounds all good for BP, but what about the victims that have lost their businesses, livelihoods, and the tarnished areas that people are now afraid to visit and vacation at ?
Lawyers representing the victims say it is hard to try and calculate future lost earnings. It is also difficult to try and estimate what they could receive from a court judgement if they choose to sue BP.
Ken Feinberg, appointed by President Obama, is scheduled to begin the process of offering one time settlement offers within the next few weeks. A BP spokesman said, "The fund will offer lump sum payments in return for an agreement not to pursue claims in court."
The company believes the lump sum pay off will help to limit their liability and put a cap on the amount they are required to pay. This sounds all good for BP, but what about the victims that have lost their businesses, livelihoods, and the tarnished areas that people are now afraid to visit and vacation at ?
Lawyers representing the victims say it is hard to try and calculate future lost earnings. It is also difficult to try and estimate what they could receive from a court judgement if they choose to sue BP.
Ken Feinberg, appointed by President Obama, is scheduled to begin the process of offering one time settlement offers within the next few weeks. A BP spokesman said, "The fund will offer lump sum payments in return for an agreement not to pursue claims in court."
Friday, July 16, 2010
BP (NYSE:BP): Bankruptcy and Sticking It To Asset Buyers
BP (NYSE:BP) may stick their potential asset buyers with lawsuits, said lawyers. As the company continues its attempt to raise money to help pay legal claims that some are estimating could reach over $100 billion.
There are certain laws in place that could prohibit fraudulent transfers, allowing victims to sue a buyer to get money to pay claims. Which would leave the purchaser required to pay BP's obligations, if the company files for bankruptcy. Although there could be a change to federal bankruptcy laws, if approved could make a buyer wait for BP's approval from victims for the sale. The other option being to convince a judge that the company has sufficient assets to pay all legal claims in full.
New York bankruptcy lawyer, Martin Bienenstock of Dewey of Leboeuf LLP said, "Any purchaser will worry about fraudulent transfer and successor liability issues and perhaps request part of the purchase price be kept in escrow for such a contingency."
There are certain laws in place that could prohibit fraudulent transfers, allowing victims to sue a buyer to get money to pay claims. Which would leave the purchaser required to pay BP's obligations, if the company files for bankruptcy. Although there could be a change to federal bankruptcy laws, if approved could make a buyer wait for BP's approval from victims for the sale. The other option being to convince a judge that the company has sufficient assets to pay all legal claims in full.
New York bankruptcy lawyer, Martin Bienenstock of Dewey of Leboeuf LLP said, "Any purchaser will worry about fraudulent transfer and successor liability issues and perhaps request part of the purchase price be kept in escrow for such a contingency."
Wednesday, July 14, 2010
Mitsui Tells BP (NYSE:BP), We're Not Paying Bill
It seems Mitsui is following suite with Anadarko telling BP (NYSE:BP), we're not paying the bill. BP sent the bill last month requesting $111 million for oil cleanup costs and legal claims associated with the spill.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Mitsui owns a 10 percent stake in the Macondo well, Anadarko's stake is 25 percent. Normally all companies owning a stake in a well are required by law to pay their share, if there is an oil spill. It will be some time before BP sees any money from their partners. They are claiming legally they are absolved from all financial responsibility. Due to the fact BP was negligent and reckless in their behavior. Leading up to the explosion and resulting in the sinking of the Deepwater Horizon.
A Mitsui spokesman said while the cause of the accident continues to be investigated by the government, they are issuing an independent review into the reimbursement claims. He said,
" Therefore, we are withholding reimbursements of BP's invoices, other than with respect to the non-incident costs at this time."
BP spokesman, Andrew Gowers said, " We are disappointed that they too are failing to live up to their responsibilities. We won't be distracted from fulfilling our own." Gowers wouldn't comment on weather BP would try and force them to pay. He did say, if the company wanted to pursue such an act, according to the joint operating agreement, they would have to pursue any disputes through an outside arbitrator.
Monday, July 12, 2010
BP (NYSE:BP) Accident Compensation Cut On 40,000 Claims
BP (NYSE:BP) is reducing accident compensation on over 40,000 legal claims submitted to them, spawned from the disaster that's said to be the worst oil spill in U.S. history. As if BP isn't unpopular enough, this isn't going to help give people a restored confidence in the company.
The reasoning for this cut is because of lack of paperwork that was supposed to be submitted with the claims. BP's solution, significantly reduce the payments to those individuals impacted by the the disaster who failed to meet these requirements. Kenneth Feinberg, federal BP claims administrator verified this, saying that there would be less paid out to "individuals whose claims filed were incomplete."
Louisiana's Department of Children and Family Services secretary, Kristy Nicholas, said a BP representative told her that of the 99,508 claims filed, over 40,000 people be getting less on their checks. Because many people didn't have the acceptable records according to BP. "It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries, said Nicholas."
The reasoning for this cut is because of lack of paperwork that was supposed to be submitted with the claims. BP's solution, significantly reduce the payments to those individuals impacted by the the disaster who failed to meet these requirements. Kenneth Feinberg, federal BP claims administrator verified this, saying that there would be less paid out to "individuals whose claims filed were incomplete."
Louisiana's Department of Children and Family Services secretary, Kristy Nicholas, said a BP representative told her that of the 99,508 claims filed, over 40,000 people be getting less on their checks. Because many people didn't have the acceptable records according to BP. "It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries, said Nicholas."
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