bpjustice

We cannot advise you what to do given your particular circumstances.  We strongly advise you to consult with an attorney to help you decide which of the  three options, described at the bottom of this page, are best for you, especially before signing away your rights.  
 
Background - How Did We Get Here and Learn About Your Options
 
After the Exxon Valdez oil spill, Congress passed a federal law called the Oil Pollution Act (OPA).  Some states have additional laws, which also cover claims involving physical injury or death.  Together, these laws cover the options for you and your family, as well as your businesses, to try to get back your lost income or profits as a result of the BP oil disaster.  If you or family members have experienced health effects or physical injures as a result of the disaster itself, there may be options to file these types of claims, as well. 
 
After the BP oil spill, the law required BP to take responsibility for paying certain claims.  It announced that the company had set aside $20 billion to cover these claims.  However, many people have decided also to join a lawsuit that has been filed against the company and others in New Orleans.  Why?  Several reasons.
 
There has been wide-spread dissatisfaction with the performance of BPs' Gulf Coast Claims Facility (GCCF), which BP set up to give out this money.  BP's GCCF is administered by Ken Feinberg and his law firm, Feinberg Rozen, which BP is paying $850,000 per month.  Moreover, Feinberg has duties of confidentiality and loyalty to BP; he is required to turn over all claims information to BP; and BP has a central role in hiring and firing everyone Feinberg brings on to help.  As a result, in February 2011, in a strong rebuke to BP and the legal ethics of Ken Feinberg, a federal judge ruled that it was misleading for Feinberg to call himself "neutral" or "independent" from BP. The judge ordered Feinberg and all of his representatives to clearly disclose his role as "acting for and on behalf of BP in fulfilling its statutory obligations ... under the Oil Pollution Act of 1990."  Moreover, said the judge, he must "[a]dvise claimants that the 'pro bono' attorneys and 'community representatives' retained to assist GCCF claimants are being compensated directly or indirectly by BP."
 
According to one important legal ethics expert, "Feinberg has been engaging in unethical conduct, including conduct involving dishonesty, deceit, fraud, or misrepresentation ... that has been misleading claimants and posing a serious threat to the administration of justice."
 
Among the things for which the GCCF has been criticized is creating a complicated claims process, secrecy, arbitrary decision-making, conflicts of interest and other serious problems.  For example, BP's GCCF is requiring that families sign away all legal rights not only for themselves, but for their spouse, their children, their parents and all of their heirs even though no one knows today what losses your family and business may suffer in the future due to the BP disaster.  Because of the type of misconduct by the companies that caused the spill (there are several companies besides BP that are responsible), there is a possibility that the litigation (filed in federal court in New Orleans; residents can join this litigation at the Federal Court’s website) might find them liable for far more than $20 billion.  This means far more compensation could be available to families and business through this lawsuit. 
 
Incredibly, as problematic as the GCCF has been so far, BP is now arguing that the GCCF has been "too generous" to residents and businesses!
 
Your Options
 
1.     Filing an “Interim Payment” claim with the GCCF and joining the Federal lawsuit (known as the BP Oil Spill MDL).
This option involves filing two forms: (1) a 15-page Claim form with the BP's GCCF, available at the GCCF website  and (2) a 2-page Short Form available at the Federal Court’s website.
 
A GCCF “Interim Claim” is meant to pay you for your losses to date, not the losses you could have in the future.  You can always go back for additional interim payments, at quarterly intervals.   This option also allows you to join the lawsuit. 
 
The first trials in the lawsuit are scheduled for February 2012.  
 
2.     Filing a claim only with the Federal Court for all losses, past and future.
To take advantage of this option, it is best to file of a 2-page Short Form available at the Federal Court’s website.
 
This form can be filed with or without an attorney.  Claimants can follow the progress of the lawsuit at the special Court website.
 
3.    Filing a claim only with BP's GCCF for a Final Payment.
This option requires filing a 15-page Claim form with BP's GCCF, available at the GCCF website.
 
Also, if you have already received an Emergency Payment (that process ended in November 2010), you may receive a “quick” final payment without submitting more information.  ($5,000 for Individual Claimants or $25,000 if a Business Claimant.)  (You will need your GCCF Claimant Identification Number and Password.)
 
However, in either case, to receive a final payment, BP's GCCF requires that you must sign a “Final Release and Covenant Not to Sue,” which is a legal document that says in the future, you and your family (spouse, children, parents, heirs) cannot seek any more money from BP or any of the other 120 companies that could be responsible.  That applies even if, in a year from now, you find out your losses were more than you thought.  Once you sign this document, your legal rights end.  You are also forever prevented from joining the lawsuit.
 
For help dealing with BP's GCCF, please try to find a good attorney in your area.  A five-state network of legal services organizations is providing legal assistance through the Mississippi Center for Justice.  Go to their web site for more information.  However, as noted by the Judge, you must be told that these organizations are being paid by BP. 
 
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