09192017Headline:

New Orleans, Louisiana

HomeLouisianaNew Orleans

Email Tom Young Tom Young on LinkedIn Tom Young on Twitter Tom Young on Facebook Tom Young on Avvo
Tom Young
Tom Young
Attorney • (813) 251-9706

BP Agreed to Settlement Methodology, Case Closed

9 comments
BP Geoff Morrell 60 Minutes USA Today

BP spokesperson Geoff Morrell doing an about face on CBS’s 60 Minutes.

Last week, BP spokesperson Geoff Morrell defiantly proclaimed on 60 Minutes that “no company would ever agree to a Settlement that compensates people that were never harmed by their actions. And we most certainly did not agree to such a settlement.”

Except they did. Often. And emphatically. But that’s a different story.

What Morrell did not say is that the damage payments complained about by BP are indeed traceable to the spill, as they are supported by evidence that BP enthusiastically agreed and admitted on innumerable occasions would be sufficient to objectively establish that claimant losses were in fact caused by its spill.

The evidence required and the analysis methodologies necessary to establish “causation” were negotiated over a period of many months and subsequently memorialized in a 1,200 page legal document. One of the most comprehensive and complex contracts ever conceived. BP attorneys frequently and consistently reiterated the company’s agreement and support of such evidence and methodologies in court filings, emails and statements in open court to presiding Judge Carl Barbier as well as judges on the 5th Circuit Court of Appeals.

So what’s the problem?

BP: We were schooled

No one is actually advocating that those not harmed as a result of BP’s Deepwater Horizon oil spill and subsequent world-class environmental and economic disaster should receive a windfall. Nevertheless, BP is hoping that is what the casual observer believes. That greedy plaintiff trial lawyers, with the help of a crooked Louisiana Bar and judiciary, have somehow rewritten the very precise 1,200 page Settlement Agreement to function more as a jackpot lottery than a fair and reasonable compensation program. That a bunch of C students from second rate law schools in the podunk South actually schooled BP’s $1,000 per hour Harvard educated Manhattan attorneys.

Woe is BP

The problem with BP’s feigned surprise at the way the Settlement Agreement is being implemented is that it should come as no surprise at all. As New Orleans investigative reporter David Hammer pointed out in a report on BP last week, company attorneys and other representatives sang the Agreement’s praises, actually emphasizing its “claimant friendly” nature, “generous payments” and relaxed causation standards. BP’s salespeople were out in full force in an attempt to sell local businesses on the concept of utilizing the theretofore non-contentious payment program rather than suing BP the old fashioned way.

Admittedly, and much to management’s belated chagrin, BP did a good sales job.

In furtherance of this pursuit, BP hired gun and renown economist Henry Fishkind opined the following in court filings:

“The Settlement Agreement establishes a variety of standardized mechanisms that can be used by Claimants that do not receive a presumption to establish that their losses are due to the DWH Spill. These mechanisms are straightforward and transparent, facilitating the review of a claim as well as a Claimant’s decision about whether to participate in the Settlement or to opt out and continue to the claim through litigation.”

In other words, drop your lawsuits and join our party. If your numbers fit our model, it’s good for you and it’s good for BP.

As lead BP attorney Richard Godfrey triumphantly proclaimed to Judge Barbier when seeking judicial approval of the deal:

“We have presumed causation in Zone A (along the beaches). We’ve presumed causation. It’s irrebuttable. You know as well as I do, Your Honor, how many people come in and think they have got a damage claim for economic loss; but, when the facts come out, they had a bad year because they lost their key manager, they had a bad year because the street was being repaired in front of them, whatever reason. We’re presuming causation for whole sections of the settlement class depending on where you reside and the nature of your business.” 

Wanting to confirm that he actually heard Mr. Godfrey’s pronouncements on the causation standard correctly, Court Appointed Claims Administrator Patrick Juneau asked BP in September 2012, as a hypothetical, if he should pay an accounting firm that met the eligibility formula but clearly suffered its losses because of a partner’s illness and not the spill. BP’s in-house lawyer, Mark Holstein, said yes, that as long as the test was satisfied, such “false positives” were expected and payment should be made.

So much for spokesperson Morrell’s insistence on 60 Minutes that BP would never agree to pay such a claimant. Then again, veracity and credibility are not BP strong suits.

Reiterating this position, BP attorney Ted Olson, when questioned by 5th Circuit Court of Appeals Judge Edith Clement about the relaxed causation standard, said the methodology was part of a grand compromise and that it is what BP intended and agreed upon. No question about it your honor.

In Perspective

BP would have you believe that tens of thousands of frivolous claimants have hit the winning lottery numbers. Nothing could be further from the truth. The documentation requirements for establishing a loss are stringent and diligently enforced by the Claims Administrator. So much so that over 40% of all claims submitted have been denied – over 50,000 to-date. In fact, more claims have been denied than approved.

BP wants to have its cake and eat it as well. The courts need to put a stop to it. Now.

9 Comments

Have an opinion about this post? Please consider leaving a comment or subscribing to the feed to have future articles delivered to your feed reader.

  1. up arrow

    […] as I have pointed out before, and my friend J.R. Whaley discussed more recently, BP’s attorneys told at least four Federal […]

  2. up arrow

    I hope the Supreme Court takes the case as soon as possible and puts closure to this stalling BS.

  3. up arrow

    […] BP Agreed to Settlement Methodology, Case Closed 4 days ago […]

  4. BK Lim says:
    up arrow

    With that evidence and the fact that the well that blew was the 3rd illegal well, you can literally take BP to the cleaners. That is why they actively suppress our info from getting out to the wider public.

  5. BK Lim says:
    up arrow

    There was no mega oil spill on 20 April 2010, the night of the blowout. The Macondo Reservoir was not breached yet. It was deliberately breached with a detonation within the well at 17:22 22 April 2010. BBC documented it.

    Except they deliberately placed explosion video footage earlier together with the junk shot and top kill options. See the video clip:

    Published on Jan 21, 2013

    A clip from BBC’s documentary Deepwater Disaster – BP Oil Spill. At min 13:10 of the original video, BP clearly admitted an explosion was detonated in an attempt to stop the oil flow. “….Out of options, an explosive charge was detonated inside the BOP,,,,”

    This is tantamount to confessing that BP and USCG committed perjury by lying to Congress. Both BP and USCG confirmed that there was a second explosion which broke the Marine Riser and sank the burning DWH wreck at 10:22 CDT 22 April 2010.

    BP had always maintained that the BOP could not be removed, partially dismantled or opened in anyway for fear of aggravating the gushing and unstable rogue well. So how was the explosive device inserted inside the BOP for the deliberate detonation?

    http://www.youtube.com/watch?v=QVHueWo3g8Q

  6. Tanya says:
    up arrow

    Bp says that they have no certain time frame to pay any thing . That’s also something to look into .

  7. DAVID K says:
    up arrow

    Is it my understanding that the 5th circuit and BP changed the accounting for compensation for farms to the 3-4 months of each year
    to start from 4/20/10 the day of the leak started?

  8. Kris Sahr says:
    up arrow

    Tom
    We opted out of the Class settlement because they only made us two out of our four offers and if we didnt accept them all we couldnt accept any. Since we didnt have the full offer by the Opt Out date we didnt have any choice but to Opt Out. We are being represented by Brent Coon and are waiting for our day in court. We are a commercial fishing business. Please keep up the good work exposing BP B.S. Thanks

Leave a Comment

Have an opinion? Please leave a comment using the box below.

For information on acceptable commenting practices, please visit Lifehacker's guide to weblog comments. Comments containing spam or profanity will be filtered or deleted.