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Shady Fraud Notices Unwelcome Holiday Surprise for BP Oil Spill Claimants

Thousands of business owners with claims for loss submitted as part of the BP oil spill settlement received an upsetting “gift” in the form of a fraud notice during the Christmas holiday.  The notices provided virtually no information supporting the allegations despite the fact that all of the recipients of the claims notices had claims that were pending for at least six months.  Many of the claimants had submitted their claims over a year prior, yet there was no factual basis provided in any of the letters to indicate why the claims were being investigated for fraud.

This strategy of threatening fraud seems particularly suspect based on when the fraud notices were mailed.  The standard practice under the BP oil spill settlement has been to send out letters to claimants on Wednesdays at 9 p.m. that indicate whether a claim was denied, approved, or lacking in information.  However, these letters were sent out at close of business the Wednesday before the company closed for the Thursday through Sunday Christmas period.  This tactic left targeted claimants without the option to contact the BP claims office to obtain an explanation or justification for the investigation until the after the Christmas holiday period.

The real goal of this tactic might be to create financial pressure on claimants to abandon legitimate claims for loss.  The notices provided absolutely no specific allegations or facts to justify initiating a fraud investigation involving claims that have lingered for a prolonged period.  This intimidation tactic often is employed by insurance carriers to intimidate policyholders making claims for theft, fire, or vandalism loss.  The thinly veiled threat of criminal liability for fraud combined with the unavailability of information from the insurer for several days could well be designed to exact pressure on claimants to withdraw their claim.

While the fraud notices were short on substantive information, the motivations for the correspondence can be gleaned from the limited information provided to businesses that had submitted claims.  The notices indicate that recipients are under investigation by the Fraud, Waste, and Abuse Department, which is under the management of a former FBI Director.  The key information provided to recipients involves the claimant’s qualification for a new amnesty program.  Conveniently, this new program was launched just a week before sending the notices.  According to the correspondence, recipients can avoid potential criminal charges if they abandon their claim.

Many businesses who consider submitting claims as part of the BP oil spill settlement presume that they do not need legal advice and representation.  Tactics like these that amount to the denial of potentially valid claims, as well as threats to file criminal charges demonstrate the importance of working with a skilled and experienced BP oil spill claims lawyer.

Our Mississippi BP claims attorneys represent businesses who have suffered losses caused by the BP oil spill.  At Barrett Law, our seasoned Mississippi BP Claims Attorney is here to help.  Contact our firm today at (800) 707-9577 to schedule your free consultation, so we can answer any questions you may have regarding filing your claim.

 

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BP Settlement to Pay Medical Claims

People who have suffered harm as a result of the BP Deepwater Horizon oil spill may have reason to celebrate.  Specifically, they are one step closer to receiving compensation for the negative health consequences that the oil spill had on many people who lived or worked along the Gulf Coast after the April 20, 2010 blowout and spill.  After the appeals court in New Orleans dismissed BP’s attempt to modify the terms of its settlement agreement, the payment of claims can now move forward.  A large part of the $9.2 billion payment in this settlement is intended to cover the medical costs of these impacted by the BP Deepwater Horizon oil spill.

People have suffered from many different medical conditions as the result of the oil that poured into the Gulf Coast, including respiratory issues, skin rashes, and neurological problems.  The settlement is intended to compensate people for these consequences of the spill.  In addition, there are funds to cover medical exams for Gulf Coast residents for the next 21 years.  Further, BP has committed to fund a program geared towards making medical care more accessible for residents who live along the coast.  This will be paid for through a $105 million grant.  Although there are still many issues that need to be resolved, this is at least a start towards recovery.

In order to recover as part of this settlement, individuals must submit their claims by February 11, 2015.  There are additional requirements to be part of this group of claimants, including the fact that the person must have lived a half-mile or less from the water in beachfront areas or within one mile of the water in wetlands along the panhandle area of Mississippi, Louisiana, Alabama, or Florida during some part of 2010 after the spill.  Individuals who suffered negative health consequences as a result of participating in the oil clean-up also may recover as part of this settlement.  Depending upon the class into which the individual falls, the payment will vary.  Those people who worked to clean-up the oil spill are entitled to the largest payment, ranging up to a maximum of $60,700.  Residents who qualify may expect to receive between $900 and $36,950.  There are additional funds available based upon individual medical treatment costs.

In order to participate in the class settlement, the individual must relinquish all other claims against BP arising out of the Deepwater Horizon blowout and oil spill, with the exception that a person can bring additional claims if a medical condition develops after the settlement that can be attributed to the spill.  Claims like these are going to be difficult to prove.  Individuals still have the option of bringing claims against the owner of the Deepwater Horizon, Transocean, as well as Halliburton, which was a subcontractor involved with operations on the rig.

Although there have been a number of settlements, there still are a number of actions relating to the harm that the spill did to local and state governments, businesses, and other classes impacted by the spill and its aftermath.

As the four-year anniversary of the largest accidental offshore oil spill in history approaches, many people still wait for the relief  that BP promised in the aftermath of the environmental disaster.  Although the property damage was devastating, the medical conditions from which people suffered as a result of the spill also have wreaked havoc on the lives of those who lived in the Gulf Coast area.  At Barrett Law PLLC, our attorneys have the knowledge and experience to get victims of the BP oil spill the compensation that they deserve.  To schedule a free initial consultation, please call us at (800) 707-9577.  As part of our commitment to our clients, we only get paid if we successfully recover on your behalf.

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BP Continues to Deny Validity of Damages

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.

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