Skip to main content
Part of complete coverage on

Feinberg plans to be more generous than courts in oil claims process

By the CNN Wire Staff
Kenneth Feinberg says he figures if his facility doesn't find a claimaint eligible, no court will do so, either.
Kenneth Feinberg says he figures if his facility doesn't find a claimaint eligible, no court will do so, either.
  • Gulf Coast Claims Facility process kicks off Monday
  • Feinberg says he is operating independently
  • He pledges a transparent, efficient process

(CNN) -- The man poised to take control of personal and business claims from those affected by the Gulf of Mexico oil disaster said Sunday he plans to be more generous than any court would be in determining payments.

"I take the position, if I won't find you eligible, I believe no court will find you eligible," attorney Kenneth Feinberg told reporters on a conference call.

However, he said if potential claimants don't like the offer the Gulf Coast Claims Facility makes, and believes they can do better, they can file suit -- although he doesn't advise it. "It is not in your interest to tie up you and the courts in years of uncertain, protracted litigation when there is an alternative that has been created," he said.

As of Monday, the Gulf Coast Claims Facility will be accepting personal and business claims instead of BP. Feinberg is charged with independently administering the $20 billion escrow account established by BP to compensate for damage caused by the Gulf disaster.

Feinberg emphasized Sunday his facility is independent of both the government and BP. Claimants can file online, by fax, by mail or in person. All 35 of BP's claims offices will remain open, but will be staffed with newly trained workers with the goal of quickly and efficiently answering questions, Feinberg said.

Claimants can receive between one and six months' compensation without waiving their right to sue, Feinberg said. Only those who file for and receive a lump-sum payment later in the year will waive their right to litigate. Feinberg said it is still being determined whether those people will be required to release just BP, or other potential defendants from lawsuits.

Feinberg has said eligible individuals who submit a claim will receive a check within 48 hours and eligible business claims will be paid in no more than seven days.

People who have previously filed a claim with BP will need to file a new claim form, although they will not be required to re-submit any documentation, Feinberg said. And even though a person may already have received a payment from BP, they may still be eligible under the program.

BP has paid out about $375 million in claims, he said, but "it's very difficult to figure out how many claims were filed. Some people received a claim number and never filed a document."

He said determining eligibility in some cases could be tricky. The farther a person or a business is from the Gulf, the less likely they are to be determined eligible. However, Feinberg said, proximity is only one factor that is being looked at. A shrimp processor located 100 miles inland that solely processes Gulf shrimp would be one example of other factors coming into play, he said.

"I don't want to underestimate the importance of proximity to the Gulf, but we'll have to be looking at the nature of your industry and how dependent you are on Gulf resources," he said. "I'm going to have to draw some tough lines, but I'm hoping I'll be able to enjoy the benefit of saying, 'If I haven't found you eligible, no court will find you eligible.'"

BP has done a pretty good job of claims payment in some cases, but has not been very effective in processing business claims, he said. Under his purview, "they may not always like their answer, but they'll get their answer within seven days."

He said he anticipates "a flood of early emergency claims" beginning Monday, but hopes the tide may be lessened by claimants' ability to file and track their claim processing online.

He said he plans to be transparent about budgets and payments, even his own compensation. A summary narrative on how adjusters will process claims has already been made public.

Asked about Florida Attorney General Bill McCollum's Friday letter to Feinberg criticizing the claims process under the Gulf Coast Claims Facility, Feinberg again emphasized that the program is voluntary.

McCollum says the program appears to be less generous to Floridians than the BP claims process, but "appearances are deceiving, and that is not the case," Feinberg said. He encouraged potential claimants to "test" the program and see how they will be treated.

Oil disaster: Tracking the numbers
Part of complete coverage on
Impact Your World: How to help
A number of organizations are recruiting volunteers to help clean up coastal areas
Depths of the disaster
Get the numbers, see the images and learn how the worst U.S. oil spill has changed lives, ruined economies and more.
iReport: Gulf journals
These stories help us look into the lives of the hardworking people of the Gulf as they watch this disaster take its toll.
Send your photos, videos
Is your area being affected by the spill? Help CNN track the oil slick and its effects on Gulf Coast communities and wildlife
Map: What's been hit
Interactive map locates oil sightings and stories
Daily developments
How big is the slick? What's being affected? What's being done?
Track the major developments of the oil disaster in the Gulf of Mexico
Berms, booms, blowouts: Glossary
Breaking down the jargon of the disaster