Gulf Coast residents are questioning recent attempts by BP to persuade residents and businesses to take settlements instead of suing BP for compensation. Several residents have complained of pressuring by BP to accept their settlement offers. Many business owners are unsure whether to take the settlement or take the chance of suing BP. These business owners believe it is too early to know exactly how much damage has occurred. Some business owners believe BP is stalling and using coercive tactics as a persuasion to settle.
BP estimates it currently handles 1500 claims per day. BP has been offering business owners small payments for the oil spill, but residents are claiming that BP is pushing claimants to settle these claims rather than continuing to make small payments. Business owners such as Darren Frickey, shrimp seller, understands he has no income at this time due to the spill, but is unsure for how long he will be out of business. Environmental scientists and biologists are attempting to measure the damage for future fishing, but are years away from making any determinations.
Several class action suits have been filed in Louisiana by both restaurants and fishermen in the area. Federal judges in Idaho are discussing which court should have jurisdiction over the suits against BP. Kenneth Feinberg, an arbitration attorney, acting as administrator of $20 billion compensation fund, believes BP is stalling on paying out to the oil spill victims. Speaking in Alabama, Feinberg stated he saw many business owners frustrated by the slow and excessively complex process for claims. Feinberg has experience in administering payments as part of the federal bailout compensations and payments made to victims of the 9/11 attacks. BP currently manages all the compensation, but Feinberg will be taking control of the claims process beginning August 10.
Alabama Attorney General Troy King, has criticized BP for circulating a payout of $5000 in lieu of filing a suit, and has spoken out against the deadline set for claimants. Currently, victims have 90 days from when the underwater well is sealed to file a claim. Feinberg states the AG’s comments were “under advisement” and the 90 day deadline applies only to emergency fund checks.
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