Louisana AG Disputes BP Fund’s Push for Claimant Release of Rights

In a letter dated Nov. 17, 2010, Louisiana Attorney General Buddy Caldwell challenged provisions of the Gulf Coast Claims Facility (GCCF) Draft Protocol for Interim and Final Claims that ask claimants to sign a broad release of their rights in exchange for a final settlement.

The AG’s office reported that Caldwell asked Kenneth Feinberg, GCCF administrator, to make “significant changes” to the claims process. Caldwell asserted that as an independent claims administrator, GCCF “should be putting as much effort into protecting the rights of the claimants as they do the rights of British Petroleum (BP).”

Improvements to the claims process suggested by Caldwell include:

• A better explanation of the process;
• Claimants should be informed of their right to consult with counsel or otherwise be offered assistance in understanding their rights; and
• More transparency, including allowing the state access to pertinent information about the claims process that would allow it to monitor the success of the GCCF.

Feinberg responded in a letter dated Nov. 22 that he made changes in both the Final Protocol and the Release in an attempt to narrow the differences, and will allow interim claims without the necessity of a release for the entire three-year life of the GCCF.

Caldwell warns all claimants to carefully assess their damages, including future damages, and carefully read any releases and understand their rights before signing any documents in exchange for final settlements. He urges claimants to seek private counsel.

Caldwell is conferring with other Gulf Coast attorneys general to press Feinberg to agree to restrict the scope of releases when final payments are accepted, to restrict the subrogation rights of BP and to limit deductions from final payments.

Source: Louisiana AG’s Office

Topics Claims