BP (NYSE:BP) compensation fund administrator Kenneth Feinberg has said shrimpers who make claims against the escrow fund will have to deduct claims BP has already made to them.
For some reason the shrimpers believe they should be paid for full claims going forward, even after being paid.
The shrimpers are using a statement by BP that they're not seeking deductions, but in truth BP really doesn't have much say in the matter, which is one of the reasons Feinberg was placed over the fund.
Feinberg said for those shrimpers whose boats were paid to be used for cleaning up the oil spill, they will have to deduct the pay, as it wouldn't be "fair or just" if they didn't.
I don't see the problem here. The shrimpers got paid and didn't suffer financial harm, so how can they justify getting paid and then getting paid again in the claims process, pretending they received no money? It really doesn't make much sense.
They're of course trying to get paid twice, no matter how they attempt to spin it.
Feinberg is looking at the overall picture, and many people and businesses have legitimate claims which they haven't been paid for once.
Some say if BP doesn't mind compensating the shrimpers than neither should Feinberg, but that's not how it works.
For what is perceived as better or worse, Feinberg was given the final say on all the claims being made and the development of parameters surrounding the process.
While certain claims which are rejected can be appealed to a panel of judges, Feinberg has been empowered with the latitude to set it up the way he sees fit, and he has had a lot of experience in dealing with issues like this is past circumstances of distributing claims.
To appeal to something BP says in reference to the fund has absolutely no bearing on anything, and it's highly unlikely Feinberg will give in on this issue and pay shrimpers twice. That would set a precedent that could unleash an torrent of others attempting to do the same thing.
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