Q&A: Lafitte, Louisiana July 15, 2010 Townhall Meeting With Kenneth Feinberg About The Gulf Coast Claims Facility Claims Process
On Thursday, July 15, 2010, I attended a town hall meeting with Kenneth Feinberg in Lafitte, Louisiana. Mr. Feinberg held Louisiana town hall meetings in Houma, Port Sulphur and Jean Lafitte. At the Lafitte meeting, Kenneth Feinberg answered several questions from the participants. Below are some of the questions and his responses.
- If I get oil on my property and it is damaged because of the BP oil spill, will BP pay the cost of removing the oil?
FEINBERG: BP will be out of the picture in three weeks. However, I will pay for related damage to the building, the land, the landscape, the plants etc., but you need to file a claim. I will pay either the cost of fixing the damaged property or, if the property is totaled, the value of a total loss. - BP has advised me that it will base my profit loss upon the years 2007, 2008 and 2009. In 2008, by business flooded and I was unable to work at that time because I had to fix my house and this brought my average of the three years way down. Is there any way to throw out your 2008 because it brings my average down?
FEINBERG: I will probably will not be able to throw out your 2008 income in the calculation, but I am willing to consider pre-Hurricane Ike and even pre-Katrina income and perhaps I may be able to consider averaging the three years in a different manner and count year 2008 much less rather than counting each year one third, one third and one third. But, we'll have to see. - I am a shrimper, and our season was very poor after Hurricane Katrina and Hurricane Ike. This year was expected to be a record year for shrimp. In fact, shrimpers just before the fishing ban were catching 30-35 boxes of shrimp in 24 hours. Will BP consider that if I have the pictures to prove it?
FEINBERG: If you were going to have a record year, prove it to me that you were going to have a record year and I'll pay it. But I cannot pay a speculative claim, you can't come in and just say you're good fishermen and life treats you fairly, I want to know that it's not speculation. I want you to show me what you lost because of the spill that is damaging and I will pay it. - If I was making $5000 a month shrimping before the spill and now I'm doing cleanup work earning $5000 a month, do I have a wage-loss claim?
FEINBERG: As long as you're earning the same amount of money, you have no wage-loss claim because you have replacement business and your wage loss is zero. You have mitigated your loss. If you are only able to partially mitigate your damages, for example, you were earning $20,000 a month before the spill and now you are only earning $5000 a month, I will pay the $15,000 difference. Also, keep in mind that if you stay at home and try to not work, how much of an emergency really is it? You should try to work to mitigate your loss. - It was also going to be normal year for shrimp prices, not like record low prices like after Hurricane Katrina, will I be paid for normal prices? On the day that wildlife and fisheries took me out of the water, I have dock ticket on that day showing the price on that day May 22. Are you going to pay us for prices at that time?
FEINBERG: As long the claim is not speculative because you can prove it to me through documents like trip tickets, then I will pay it. As long as you can corroborate it, through documents and witnesses, I will pay it. - Is there a tax liability on BP payments for wages or lost profits?
FEINBERG: I am not an expert in taxes, but I believe income taxes are owed on wage loss claims. Generally, if what you lost was taxable, then the payment for your claim would be taxable. Please check with your own accountant. - I own a marina and is damaged in the in the spill, it has lost substantial revenues because boats no longer dock at the marina, boats are no longer going out and boat owners are not paying rental fees to dock, do I have a claim?
FEINBERG: Yes you have a claim; but whether your bank or finance company has a claim may be a bit tangential and perhaps banks and finance companies are not eligible to participate in the claims process; but I will look at everything.People who sells boats or finance boats may not be eligible because their claims are tangential to the spill, but I am willing to take a look at these claims.
- Mr. Feinberg, I own a manufacturing facility in Jefferson Parish. We manufacture things for the marine industry that are sold by distributers to fishermen throughout the entire gulf coast. We turned in our paperwork over two months ago to show our loss. We were told by our adjuster in Hammond, Louisiana that our claim would be paid and how much we would be paid and we still haven't received a check and they say they cannot give me an answer. I am also here today with an oyster fisherman who filed his claim two months ago and he is still waiting to hear from his adjusters. I want to know from you Mr. Feinberg are things going to get better when you take this over or it going to get worse?
FEINBERG: It is absolutely going to get better. I think BP has focused overwhelmingly on individual wage loss claims and most of the small and large business claims have been languishing. I am going to decide those claims and decide them promptly.But Mr. Feinberg, but I have twenty-five employees that count on me.
FEINBERG: Make sure by the way that I have your claim number etc..
- Mr. Feinberg, I have been injured and unable to work for the last three years due to neck surgery. I did some work over the last three years but hardly made anything. I just returned to work on a boat at the time of the spill. This year was going to be a record year for shrimpers. I was working eight days before the fishing band and made $20,000. BP is trying to say that they are only going to look at the past three years wages. Do I have a claim?
FEINBERG: When you come in to prove your claim, show me the evidence that you were unable to work during that three year period and also show me that you returned to work this year and you are no longer disabled and that you are able to work and perhaps bring in your employer who hired you or a copy of your contract. Show me that you should have made this money that you lost out on. Provide me with evidence that the oil spill prevented you from working and earning a certain amount of money that you would have otherwise earned in the absence of the oil spill. The evidence has to be more than I wake up early in the morning and I know I would have gotten a job. - I am a fishing guide with a lodge and made a business claim and have been told that I am eligible for the program and my taxes show that I am owed a certain number. BP now wants to negotiate that number. Will I get paid the number that my taxes show I am owed or will it be a negotiated number?
FEINBERG: First, as a fishing guide with a lodge, you are eligible. If you corroborate you claim and show that there was no fishing or fishing revenues were down 80% or whatever it is. Seems to be as a valid claim there is nothing to negotiate, we will look at the numbers, calculated the damage and pay you. However, I acknowledge that BP has been slow to pay and reluctant to pay some of these business claims because they are not sure and the current system is too decentralized. There is no centralized authority but that centralized authority is now me. - What is the duration of this claims process?
FEINBERG: The facility claims process will last three years. But for emergency payments, I will cut a check for eligible proven claims for up to six months. But for lump sum long term payments, I will be around three years. After that point in time, the program ends. - How long will you permit emergency payments?
FEINBERG: Emergency payment applications will only be allowed for 90 days past the day the oil stops. If you have a valid application for emergency payments, you will be eligible for up to six months of emergency payments. - Mr. Feinberg, but you are not taking into account that is only when the leak stops, that oil is 100 miles from here and we don't know what kinds of holes we will have in our defenses.
I'm just talking about the emergency payments where no release has to be signed. After the emergency payment process is completed, I will sit down and try to figure out the long term impact of the spill to figure out how long of a period to include in the lump sum checks. If you feel I am wrong on my lump sum calculations or you are uncertain, don't take the money.
If you have any questions about making a BP claim or would like to request a Free Copy of "7 Costly Mistakes to Avoid When Filing a Claim for Money from BP", call Lavis Law Firm at toll free 1-866-558-9151 or contact us online.