After pledging to “make BP pay”, President Obama negotiated with BP back in June, getting a $20 billion compensation guarantee from the oil giant.
The fund was created to provide compensation for all those Gulf residents who’ve been affected by this historic disaster. This includes thousands of business owners (hotels, restaurants, etc.), fishermen, and others along the Gulf Coast who have been hit hard by the oil rig explosion.
Now that the claims fund is in place, these businesses have a big decision to make: Should they accept a compensation check from BP and move on or should they sue the London-based oil giant in hopes of getting a bigger payout?
The risks of taking the payout now are that recipients could get shortchanged and they forfeit their right to sue. Remember, we’re still in the early stages of discovering the true damage caused by the oil spill disaster, so many businesses don’t yet know the total amount of long-term losses they’re facing, and that’s why some feel that taking a compensation check now is also a big risk.
BP says most victims not yet entitled to sue
Just this week, BP and its partners said that most oil spill victims don’t yet have the right to sue over the spill. The partners behind the blown-out Gulf well said that the majority of the alleged victims must first take their claims to the $20 billion fund created by BP.
BP and its defendants claim that businesses have to take their claims to the BP fund, where they’ll have to wait 90 days for BP to pay the claim or reject it. The claimant could only opt to sue if their claim was rejected, according to the defendants. This is an attempt by the defense group to slow the pace of lawsuits and prevent them from exceeding their $20 billion fund.
Not even the biologists know when things will return to normal
Before accepting a payout from BP, many are still waiting on more information to come in. Businesses owners and fisherman want to hear what the scientists have to say about the current state of the Gulf and its future.
The problem is that even the biologists might be years away from fully knowing when things will return to normal in the Gulf. There is still a lot of uncertainty right now, and the few predictions we do have say that its worst effects may be yet to come. We also know that there are many dead zones that have already been discovered where fish and other marine life can’t live.
But despite all of the analysis and predictions, the fact remains that a lot is still unknown, and for a company trying to predict its losses, it’s really just a roll of the dice.
Consulting with a lawyer is a good start
Whether you decide to accept a compensation check from BP or sue the company, it’s a good idea to at least speak with a lawyer to explore your options. You may be able to get small interim payouts from BP without waving your right to sue, and you’ll have someone experienced and knowledgeable on your side who can help you when BP is trying to persuade you to settle fast.
What are your thoughts on this dilemma? Would you sue or settle?
