Should I File a BP Claim? Do I Need to File a BP Lawsuit?

June 24th, 2010. By Kristine B

Ok, so for the past week, there’s been a lot of news on the BP $20 billion fund. And you’ve been reading about how quickly BP wants to release the monies to claimants. But many of you who’ve been affected by the BP oil spill may not know just what you’re supposed to do. You’ve probably got questions like…

Do I have to file a claim with BP?

Should I get a lawyer for my BP claim—or just submit a claim to BP?

Will my BP claim be enough to fully compensate me?

If I file a claim with BP, can I also file a lawsuit against BP?

Questions, questions. And a lot of confusion. Well, recently LawyersAndSettlements.com interviewed attorney Wes Pittman of The Pittman Firm, P.A. on this very subject. And I thought it would make a good topic for Pleading Ignorance—so here goes…

Yes, BP has indeed set aside a $20 billion fund for legitimate claims from people affected by the Gulf of Mexico oil spill. Although the news is good, that doesn’t mean it’s smooth sailing for all victims of the spill. Your first question is probably: 

Do I have to file a claim if I’ve been affected by the BP oil spill? 

One of the main ways that the claim fund affects victims is that victims must file a claim before they can file a lawsuit, according to attorney Wes Pittman. Pittman says filing a claim is a prerequisite for filing a lawsuit. So, if you intend to file a lawsuit, you must first file a claim with BP.

Fair enough. But…

Does filing a claim with BP mean I don’t have to file a lawsuit?

In a perfect world, that’s what this would mean. But this is not a perfect world and there are many variables in each claim. For example, BP says it will pay out all “legitimate” claims—take a look and you’ll see most quotes about the claims BP will pay mention the word “legitimate”. But, what BP sees as legitimate and what you and your lawyer see as legitimate may not be the same.

For example, there are many people indirectly affected by the oil spill. Consider event planners who make money planning events along the coast and have lost income because people don’t want events there anymore. Will that be considered a legitimate claim? What about magazines that advertise sporting gear for companies in the Gulf Coast region and have now lost advertisers? Will their claim be considered legitimate? 

Just because you HAVE to file a claim doesn’t mean BP has to accept the claim as valid. It certainly doesn’t mean you’ll definitely receive compensation for your losses. 

Now, consider how much the amount of oil spilled has grown in the past two months. Initially, it was estimated that 1,000 barrels a day were spilling into the Gulf. Then, it was up to 5,000 barrels a day. The most recent number, given by BP internal documents, says that in a worst-case scenario, 100,000 barrels of oil could spill into the region a day (note, it is not saying this is currently the case, just that in a worst-case scenario, 100,000 barrels a day leaked is possible).

Think of how different your claim would look, depending on when you filled it out. If you filled it out at 1,000 barrels a day, you might think this would affect you for a few months, maybe a year. If you filled it out at 5,000 barrels a day, you might be looking a year or more into the future. But 100,000 a day could be catastrophic for your business.

The problem is that you can’t see into the future. You can’t know for certain how long your business will be affected by this oil spill because you don’t know when it will be stopped or how much oil will be pumped into the Gulf by the time it’s all said and done.

The claims may be processed based on current estimates of how much is leaking into the Gulf, but what if the estimates are revised? You want your claim to be reflective of that–and it may not be.

So, should I contact a lawyer about my BP claim?

I say, yes. Do it. First, an attorney can help you fill out your claim form (and anyone who has filled out claims forms can tell you they can be long and complicated…hello, Lawnmower, hello CertainTeed). An attorney can help you get all the documentation for your claim together.

And, if your claim isn’t accepted or if it’s for far less than you feel is fair, an attorney can help you file a lawsuit, so you can recover money you’ve lost by this environmental disaster.

Tags: BP, BP Oil Spill, Pleading Ignorance

This was posted on Thursday, June 24th, 2010 at 10:01 am and is filed under Environment, Pleading Ignorance . Feel free to respond, or trackback. Read our comments policy.