The U.S. government ordered BP to set aside a $20 billion oil spill fund in the wake of the Deepwater Horizon catastrophe. A year later, the Gulf Coast Claims Facility, meant for nursing companies and individuals impacted by Gulf oil leak back to economic health, has paid out only a fraction of the cash. Claimants waiting for payment describe a time consuming, convoluted process that has been made more complicated by a horde of attorneys seeking to profit from the BP oil spill fund.
The entire BP oil leak claims to process
About 19 percent of the $20 billion BP set aside for the oil leak claims was paid in the BP oil spill claims with $3.8 billion paid in total by the Gulf Coast Claims Facility a year after the Gulf of Mexico accident in 2010. Kenneth Feinberg said that 201,261 claims were paid as the Obama administration appointed person to distribute the BP oil spill fund. There have been over 857,000 claims already. In five states there are 35 offices for the Gulf Coast Claims Facility. The BP oil leak claims will be paid by it until 2013, in August. Feinberg has been criticized by Gulf residents and local government officials for a claims process that has been called confusing, unfair and slow.
Damage proof
In a statement issued Tuesday defending his administration of the BP oil spill fund, Feinberg said “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” noting that one applicant tried to claim all $20 billion. About 72 percent of the claims from the BP oil spill have had payments or offers made. Claims were denied also. Not all could be accepted. Documentation is necessary for some pending claims. The BP oil claims process has frustrated businesspeople for instance fishermen accustomed to operating on an informal cash basis who often seal deals with a handshake instead of a contract. In 574 cases disputed by claimants who believed payment was too low or rejection was unfair, the Coast Guard, charged with arbitrating disputes, hasn’t overturned a single one.
Getting the money is all that matters
Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages such as the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” According to the New York Times, there are some groups targeted more than others. One of these includes the Vietnamese fisherman. When BP settles, attorneys end up with more cash for how many clients are on the list. There were thousands of Vietnamese listed on a San Antonio law firm’s list according to the New York Times. There was not an acceptance with the claims. Individuals were surprised when they realized they were on the list for a claim.
Citations
CNN Money
money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1
24/7 Wall Street
247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/
Los Angeles Times
latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story
New York Times
nytimes.com/2011/04/19/us/19spill.html?_r=1
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