In an obvious attempt to win favor in the court of public opinion, BP recently launched an advertising campaign across the country attacking the validity of damages claimed as a result of the Deepwater Horizon oil spill that occurred of the coast of the southeastern United States in April 2010. BP criticized, though not by name, Chef Emeril Lagasse for making claims approximately $8 million in damages despite the fact that only three of his fourteen restaurants are located in the Gulf Coast region. BP indicated that it ran the advertisement campaign to assure its stockholders that the company would not merely stand by while improper claims were paid.
To date, the claim of Emeril Lagasse’s business has not been paid. Lagasse’s restaurant management company, Emeril’s Homebase, responded to BP’s advertisement campaign by issuing a statement that it submitted claims in compliance with the procedure prescribed by the settlement agreement entered into by BP and administered by the United States District Court for the Eastern District of Louisiana, which is located in New Orleans.
Response to the ad campaign has not been favorable. Blaine LeCesne, a law professor at Loyola University, stated that BP’s own poor efforts at settling claims resulted in a settlement agreement with the problems of which now complaints. Nat Krasnoff, whose company Digital Designers has filed a claim that has yet to be paid because of BP’s efforts to block certain payments, said that he recognized the effort as one of BP trying to divert attention from the fact that it agreed to a formula that would result in both under-paid and over-paid claims. He further commented that BP was certainly not complaining about the companies and the individuals that would be underpaid as a result of the settlement agreement. The estimated costs associated with the Deepwater Horizon spill have risen to at least $9.6 billion, and will increase as the matter continues proceeding through the court system.
Class administrator Patrick Juneau issued a statement that the claim filed by Emeril Lagasse’s company met the requirements of a valid claim under the settlement agreement. Additionally, because the award was in excess of $1 million, it needed to be affirmed by a three-person panel, which it was.
The dispute about what damages BP should be required to pay as result of the spill rages on. Between April and September 2013, $1.3 billion in business loss claims were paid. In the last several months, only four claims have been paid. This was because of BP’s efforts in July 2013 to temporarily prevent payments to certain business for losses not directly resulting from the spill while the causation of those losses were evaluated. In early December 2013, all payments for business losses were suspended by the Fifth Circuit Court of Appeals, which oversees the United States District Court for the Eastern District of Louisiana. The three-judge panel issued a directive to District Court Judge Carl Barbier that no payments were to be made to businesses whose damages are not traceable to the spill. This is despite the fact that two BP attorneys expressly acknowledged in open court that BP contemplated paying losses that were not directly attributable to the oil spill. BP has praised the recent directive, stating that it will return the settlement agreement to its intended function—to pay only claims that are directly attributable to the oil spill.
The claims period for filing a claim for damages resulting from the BP spill has largely passed for most business and individuals. However, if you sustained damages as a result of the spill and have any questions about your rights, Barrett Law PLLC can be reached at (800) 707-9577 to discuss your legal options.