BP oil spill fund has paid just a fraction of the cash

The U.S. government ordered BP to set aside a $20 billion oil leak fund in the wake of the Deepwater Horizon devastation. A year later, the Gulf Coast Claims Facility, meant for nursing companies and individuals impacted by Gulf oil spill back to economic health, has paid out only a fraction of the cash. People demanding recompense complain a lot about the claims process, which is infested with attorneys attracted to settlement cash like flies on turds.

Processing claims for the oil spill by British Petroleum

A year after the 2010 oil spill in the Gulf of Mexico, the Gulf Coast Claims Facility has paid $3.8 billion in BP oil spill claims — just 19 percent of the $20 billion in seed money set aside by the oil business. The BP oil leak fund has been dispersed by Kenneth Feinberg who was appointed by the Obama administration. Now, 201,261 claims have been paid, he states. There have been over 857,000 claims already. BP oil spill claims can be paid until August 2013 by the Gulf Coast Claims Facility which has 3,200 employees in its 35 offices in five states. Most people like to criticize Feinberg for his position though. They say the claims process is confusing, slow and unfair to many people.

Damage proof

One applicant tried to request $20 billion causing Feinberg to say “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven.” This was released on Tuesday in defense of his management of the BP oil leak fund. A payment or offer of payment has been made for 72 percent of BP oil leak fund claims. There have been claims denied too. Others are pending until more documentation is produced. 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 rather than a contract. The Coast Guard has not overturned any of the 574 cases disputing payments.

Attorneys attracted by the smell of cash

Residents in the Gulf Coast haven’t even realized when some lawyers sign them up for claims or get misled into thinking they can get money, especially the populations with cultural and language barriers. In his statement, Feinberg said the proliferation of fraudulent legal activity was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times states that several law firms have targeted Vietnamese fishermen to con them onto their client lists. With all the clients on the list, a lawyer can get lots of money. When BP settles, it pays depending on the clients involved. According to the New York Times, there was a San Antonio law firm that abused this. It has thousands of Vietnamese listed in its claim. The claims were rejected, and many people were surprised to discover their names on the list.

Articles cited

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