Declarations

Lump Sum for Future Loss

“If they don’t like it, they can reject the lump sum.”

—Kenneth Feinberg, head of the $20 billion BP spill compensation fund, said at some stage he would offer claimants a lump sum for all future loss in exchange for an agreement that they would not sue BP over the spill. If they reject the lump sum, they can go to court. Victims of the biggest oil spill in U.S. history should be compensated if their claims would be applicable under state or maritime law, Feinberg told the Financial Times. He was still trying to calculate how to evaluate losses caused by interruption of business, lost business and diminished real estate value. The paper said Feinberg would set a cut-off date for filing emergency claims – probably one or two months after the spill ends. BP said it has paid out $2.35 billion so far in cleanup and compensation costs related to the spill. That does not include the $20 billion oil spill fund BP has agreed to set up, nor the billions of dollars it will have to pay in fines. (Reuters)