Court Asked To Take Over BP Spill Claims Process

The State of Mississippi has filed a pleading asking the federal judge handling the BP multi-district litigation to take control of the Gulf Coast Claims Facility (GCCF) claims process.

A "Statement of Interest on Behalf of the State of Mississippi" was filed this week in the United States District Court in the Eastern District of Louisiana.  The Attorney General's Statement to U.S. District Judge Carl J. Barbier asks the court to take control so that claims can be processed in a more timely manner.

In the statement, Mississippi Attorney General Jim Hood said he has the authority, standing and duty to vindicate the rights of Mississippi citizens and businesses before the Court. He says costs associated with the BP spill have been "improperly shifted to the State as a result of BP's failure to fulfill its obligations to compensate the individual and business claimants injured as a result of the oil spill."

Trust fund

On June 16th 2010, the Obama Administration and BP announced the creation of a $20 billion dollar "Oil Spill Liability Trust Fund" to provide a faster and more fair way to pay damage claims for individuals and businesses harmed by the Gulf Oil Spill. BP agreed to contribute $5 Billion per year to the fund until the $20 billion dollars is depleted, including $5 billion in 2010.

Kenneth Feinberg was appointed to be the administrator of the BP Claims Fund. He was previously the administrator of the U.S. Governments $7 billion dollar fund for victims of 9/11. Feinberg created the independent Gulf Coast Claims Facility to work with individuals and businesses the Gulf Coast Region to settle their claims.

Reflecting growing impatience with the process, Hood said the state has a direct and substantial interest in the $20 billion Trust Fund set up to pay claims to businesses and individual, and to restore the natural resources of the Gulf region.

Limited success

The filing follows numerous letters between the Gulf States Attorneys General, BP and Feinberg, which Hood says have met with only limited success.

"I want Mr. Feinberg to continue paying claims, but I want the process to be transparent, fair and fast," Hood said. "If the court does not take control, we will be sending Mr. Feinberg a civil investigative demand which will inevitably lead to needless litigation and expense."

While Hood did not directly criticize Feinberg for his administration of the BP fund, a lawmaker from neighboring Louisiana was not as restrained.

"The people of Louisiana deserve transparency throughout the claims process and Mr. Feinberg has refused to adapt the process to better suit the needs of the people affected by the BP disaster," said Rep. Steve Scalise (R-LA). "As a result of this, many claimants have fallen through the cracks, and can't get answers to basic questions about their claims.  Mr. Feinberg must be held accountable to the victims of this disaster, and I eagerly await his response to my request."