Feinberg to Pay Realtors Via BP (NYSE:BP) Fund

Administrator of the BP (NYSE:BP) compensation fund, Kenneth Feinberg, received a standing ovation from a convention or Realtors on Sunday, as he reiterated his reversal on allowing the compensation fund to be used to pay those legitimately hurt from the oil spill.

Feinberg has been blasted by many who believe they are being short-changed from the fund, but there have been so many illegitimate claims, and claims made which don't include proof of anything, that Feinberg has found it difficult to go through the massive amount of material he has to in order to make a decision and pay out legitimate claims.

For the Realtors, Feinberg has set aside $60 million of the $20 billion committed for the fund to pay out temporary claims to them.

That means those Realtors believing they are owed more in damages from BP will be able to pursue lawsuits if they feel they can win the cases.

Feinberg has given his opinion in the matter that they will have a hard time winning these types of cases, but at least they're getting some compensation short term and will have some relief in these difficult times.

Realtors were actually damaged more from the Obama moratorium in the Gulf than they were from the oil spill, and Feinberg said there's nothing he can do to alleviate the fallout from that.

BP (NYSE:BP) Fund Administrator Kenneth Feinberg Backs Off on Proximity Rule

Kenneth Feinberg has caved under pressure, as the administrator of the claims portion of the BP escrow fund said he'll be more lenient than originally stated concerning geography in relationship to the claims being made.

Feinberg had said the closer claimants were to the coast the more likely they would be accepted.

This doesn't imply anything goes, just that there will be more openness in looking at claims which may be legitimate, but further away from the coast than other directly affected by the oil spill disaster.

Feinberg has been under fire for the slow claims process and not being generous enough in his decisions.

BP (NYSE:BP), Transocean (NYSE:RIG), Cameron (NYSE:CAM) Want Judge to Require Claimants to Go Through Fund First

As pressure to begin lawsuits against companies involved with the Gulf of Mexico oil spill like BP (NYSE:BP), Transocean Ltd. (NYSE:RIG), Cameron International Corp. (NYSE:CAM) mounts, the companies are seeking to have Judge Carl Barbier, who is overseeing the cases, require almost all of them first go through the process of seeing if the qualify to be paid from the compensation fund set up by BP and administered by Kenneth Feinberg.

Even though it seems slow at this time receiving money from the funds, the idea is it would still be much quicker than using lawsuits, and it would probably pay more when considered the approximate 30 percent lawyers get for whatever judgements they win.

The only downside is if claimants don't qualify, which they will have then put off beginning legal proceedings for months.

Either way, the trials will take time, and it seems worth the attempt to see if they qualify for compensation funds, especially for those making claims who live near the Gulf coast, who are getting the priority treatment from the fund as far as who qualifies.

Is BP (NYSE:BP) Compensation Fund the Way to Go?

There's a lot of chatter going on about whether or not individuals and businesses should accept what is offered from the BP (NYSE:BP) compensation fund or go forward with a lawsuit.

Several things have to be considered in order to make a educated decision.

The first in relationship to time. Starting in November, permanent settlements will be offered, and for individuals they'll be able to get it almost immediately, while businesses will have to wait a little longer.

For lawsuits, they could go on for many years, and individuals and small businesses especially, will have to make a decision on whether or not it's worth the long wait for something that isn't guaranteed.

That leads to the second point, which is if someone qualifies for the claims from the BP escrow fund, they are guaranteed what they are offered. With a lawsuit, there is no guarantee they'll even win, let alone get a payment.

And if someone does win, will the amount justify the lawyer fees, which should run around 30 percent of the award? It would have to be a big award to make it worthwhile.

Some people are making it complex by trying to figure out what they may miss out on if certain scenarios emerge in the future.

For example, questions are being asked as to how much economic damage has really been done, and if the fisheries will return to where they were before the oil spill.

The problem there is nobody knows the future. To base a decision on something that may not be known for years, isn't a decision at all, but a rolling of the dice.

People and businesses would be better off taking the money now and then forget about the rest. How does it help if time is spent trying to extract every penny out of the situation?

If people and businesses qualify for and accept the claims, they can get on with their lives and businesses and start to put things back together again.

Extending the pain and stress in hopes of getting more money, in most cases, won't be successful, and will waste too many years of our lives.

For most people the best choice is to go the route of the fund and get on with their lives. Life is too short to take five or ten years out of it pursuing money that may never come our way, and if it does, will be paid out to lawyers. That makes no sense.

It could be said that BP and others are responsible and should have to pay. And that's correct. But there is no way anyone, including all the people administering the BP compensation fund, to project out into the future what will happen and take every possible scenario into account to pay out a perfect amount. It's not humanly possible.

So to accept what is considered a fair amount is about the best that can humanly be done, and anything above that is an exercise in futility.

Government Oil Claims Czar Kenneth Feinberg Under Increasing Pressure Over BP (NYSE:BP) Fund

The honeymoon didn't last long concerning government oil claims czar Kenneth Feinberg, who is administering the claims portion of the BP (NYSE:BP) compensation fund. As a matter of fact, the honeymoon didn't even get started before the criticism started coming in.

All the really happened was the griping against BP simply transferred to Feinberg, with the same old complaints being aired.

Of course part of this is Feinberg's fault for listening to the original complaints and assuming there was something wrong with what BP was doing.

So he made all sorts of promises which raised the bar, and some are saying the new management makes them want to go back to how BP was running it.

But when you consider the mortgage fiasco run by the government where very similar claims of bureaucratic nightmares, delays, and claimants not properly filling out their paperwork, and you have the same situation here.

Add to that all the cons they're trying to protect the process from, and you see what they're up against, and I think the problem is there really is not way to make it happen quicker without throwing out checks and balances and allowing anybody to get their claims approved.

That's not going to happen. So people and businesses are stuck with having to go through the long process, which they thought was going to be streamlined and go much quicker.

Another problem is the nature of people themselves. If we were granted access to the claims being made, we would probably see a plethora of assertions which all have to be checked out before being confirmed. And if that's the case with even a small percentage, it would cause problems for all the honest people and businesses only trying to get back what they lost.

Again, Feinberg probably raised the bar far too high and promised more than he was able to deliver, creating the growing resentment and anger over the fund and the process.

Missouri DNR Director Heading Up BP (NYSE:BP) Fund

Missouri Department of Natural Resources director Mark Templeton has stepped down from his position to take over the role of heading up the $20 billion BP (NYSE:BP) fund.

A statement from Missouri Governor Jay Nixon said he will be the executive director of the "Office of Independent Trustees of the Deepwater Horizon Oil Spill Trust."

The decision to hire Templeton was made by the trustees of the fund, and not BP, according to BP spokeswoman Jessie Baker.

This isn't to be confused with the role of Kenneth Feinberg, who is administrating the claims portion of the compensation fund, not the fund itself.

BP (NYSE:BP) Sued by Fish Market Restaurant - Why?

It's not unusual to hear of another BP (NYSE:BP) lawsuit being filed, and one of the latest is the Fish Market Restaurant in Birmingham, Alabama.

What's important about this story isn't over who the suing, but rather the "why" of the suing.

By why, I mean - why bother?

With the BP compensation fund administered by Kenneth Feinberg ready to pay out for legitimate claims, and the business being close to the oil spill, why hire a lawyer to sue when you can get your money right away?

This is why there was an alleged controversy concerning the fund once BP handed the claims process over to Feinberg; the lawyers knew they were going to lose a lot of money because of it, and consequently began a media strategy to discredit it.

It's obvious, because the fund wasn't so-called controversial until Feinberg took over, then suddenly there were questions about its parameters and legitimacy.

Lawyers have evidently been busy talking people into being fearful about the fund in order to get their 30 percent of the cut.

Wait till years from now when claimants are still waiting for their money, and when they get it, lose about 30 percent to lawyers' fees.

How does that help them in any way?

Why not go through the claims process to see what you're offered. It's only claims which are permanently settles which disallow the suing of BP. So what is there to lose?

Those individuals and businesses with legitimate claims would be far better to go through the claims process than litigation, as how could these lawyers promise they'll get more money once they take out their fees?

Even if the lawyers win them 20 percent more than the claims fund offers, once the fees are deducted, they lose 10 percent of what they would have gotten, plus the time it takes the lawsuit to be completed.

Feinberg has even said he will probably reward claimants more than they probably would get through litigation, and lawyers working for him offer their services for free (to the claimants).

Bottom line: go through the claims process and get your money as soon as you can. There's nothing in it for the vast majority of people and businesses suing BP for the reasons stated above.

Battle Over BP (NYSE:BP) Compensation Fund Heating Up

The BP (NYSE:BP) compensation fund being administered by Kenneth Feinberg is becoming a circus as politicians and officials attempt to pressure Feinberg to change the parameters being used to make decisions on who will be paid, and how much.

Now Florida Attorney General Bill McCollum has entered the fray, claiming Feinberg is making it harder for individuals and businesses to get paid from the damages occured from the oil spill in the Gulf.

This is predicable, as creating this fund in the first place was probably a huge mistake. Many people are starting to treat this as if it's a government fund, when it is money set aside by BP to pay for the damages. The government has nothing to do with it in any way, other than negotiating for it in the first place.

That's why Feinberg was supposedly put in charge of it so it could be an independent fund, not one manipulated by politicians government officials to use it to battle the effects of the recession, rather than the sole purpose of paying those back who were victims of the oil spill.

McColloum is attempt to pressure U.S. Attorney General Eric Holder to persuade him to change the parameters of the fund, asserting they're putting greater burdens on victims.

Feinberg was accused by the attorney general of Florida of saying claims would be determined by how close people and businesses were to the spill, which really isn't a true statement.

He said the closer people and businesses were to the oil spill, the more likely they would be accepted and paid. He always left room for exceptions.

Either way, this won't be the last government official attempting to manipulate the situation so they can tap into the fund on behalf of people or businesses who are dubious at best at qualifying for a pay out.

BP (NYSE:BP) Didn't Make Claims Decision, Feinberg Says

Rumors circulating that BP (NYSE:BP) was behind the decision to force those accepting final settlements from the compensation fund were cut down by fund administrator Kenneth Feinberg, who said he made that decision and not the oil giant.

This centers around those who agree to the decision by Feinberg and his team about getting paid a one-time payment for the entirety of what is owed them from BP.

If it is accepted, those receiving the claims money will have to waive the right to sue BP in the future.

Feinberg has yet to make a decision on whether or not to extend that to other companies like Halliburton (NYSE:HAL), Transocean (NYSE:RIG) and Cameron International (NYSE:CAM), who were also connected to the accident to one degree or another.

Those receive emergency funds for short-term periods will still be eligible to sue BP if they choose to.

Proximity to BP (NYSE:BP) Oil Spill to Determine Many Claims

Although some people and businesses have been somewhat confused by the parameters surrounding the BP (NYSE:BP) compensation fund administered by Kenneth Feinberg, one this isn't confusing, and that is those who live close to the oil spill will have the best change of having their claim approved, while the further away one is from the spill, chances diminish, although it depends on the overall circumstances made in the claim.

A claim must reveal the specific damage or economic loss associated with the oil spill, which includes how close the claimant was to the spill and their "dependence upon injured natural resources."

Those who feel they were indirectly affected by the disaster will have a harder time collecting on their claims. But those who aren't rewarded can then choose to go the route of a lawsuit if they feel they have a legitimate chance to win.

The response to claims should be quick, with Feinberg stating his goal is to pay out emergency funds to those individuals who qualify within 24 hours, and to businesses within a week.

Those receiving emergency funds can still sue BP and others, while those accepting final settlements must waive the right if they want to receive it.

Claims to the Gulf Coast Claims Facility can be made through November 23.

BP (NYSE:BP) Spent $6 Billion for Spill Says Claims Manager

Costs for the Gulf of Mexico oil spill by BP (NYSE:BP) have risen to about $6 billion, and it is growing on a daily basis, according to chief claims manager Geir Robinson.

Testifying before the House and Senate Insurance committees, Robinson added that $400 million has been paid out to individuals and businesses affected by the accident.

Of that, individuals and businesses residing in Louisiana have received the bulk of that, accounting for payouts totaling $152 million.

Concerned over the ability of the company to pay the increasing costs related to the oil spill, Robinson said, "It (the $20 billion fund) is neither a floor nor a ceiling. There is every indication that the full resources of BP" will be available to pay claims and other expenses related to the incident. "There is no indication we are about to go bankrupt."

It does reveal the caution the government must take in attempting to punish BP, as there is only so far they can go before BP could no longer respond.

This is why it is ridiculous for a number of people to attack the BP compensation fund and the parameters Kenneth Feinberg has built around it.

To allow claims to be paid and then the claimants to go ahead and sure BP afterwards, would be a joke, and would crush the company, with no one receiving anything.

Those who want to sue BP have the right to, they just have to bypass the claims process represented by the fund to do so. Get guaranteed money now or take a chance on getting more later; possibly years later.

Add to that the approximate 30 percent lawyers would get, and it makes little sense for claimants to go that way, unless they were a big business that could handle the shortfall while pursuing a case.

Other oil companies connected to the accident may be allowed to be sued if people receive full claims, something Feinberg is in the middle of making a decision on.

BP (NYSE:BP) Compensation Fund, Feinberg, Already Under Fire

With the parameters set by administrator Kenneth Feinberg, for the most part, concerning the BP (NYSE:BP) compensation fund, he and the fund are already under fire just one day into the process.

The only uncertainty now is whether or not those receiving claims will be able to sue companies other than BP, who are exempt, with the acceptance of final claims, from further lawsuits.

Those receiving full payouts must waive their right to sue BP in the future if they accept them.

Most of the criticism is coming from the most affected state governments who say Feinberg didn't include them in the decision-making process when he was developing the rules for the fund.

The truth is the fund is there for people who want and need help now, and have the opportunity bypass the lengthy and expensive legal process, where nothing is guaranteed, and they would also have to pay legal fees of up to 30 percent of their award.

People and businesses would get the money rather than lawyers. What's not to like about that?

BP (NYSE:BP), Anadarko (NYSE:APC), Transocean (NYSE:RIG) and Compensation Fund

A lack of clarity and growing confusion has accompanied the BP (NYSE:BP) escrow fund administered by Kenneth Feinberg, specifically surrounding whether or not other companies like Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and Cameron International (NYSE:CAM) will be allowed to be sued after claimants are paid.

One thing for sure has already been decided. Those who agree to final claims with BP will have to waive their right to sue at a later date in order to receive the payment.

Confusion comes from the lack of a decision from Feinberg on whether that will extend to other companies in the case of final claims.

Feinberg has said, “The question of whether or not a final payment will require a claimant to release one defendant, BP Plc, or all defendants, has not yet been resolved by me.”

For those receiving claims on an interim basis for losses related to the spill, they will have the right to sue BP or other companies in court.

It's only those who agree to final claims with BP at this time that are waiving the right to sue, and no one else.

BP (NYSE:BP) Says Yes, Feinberg "No" to Shrimper Deductions

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.

BP (NYSE:BP) Claim Processing to Stop after Wednesday

With the day soon approaching where the BP (NYSE:BP) escrow fund, administered by Kenneth Feinberg, is about to launch, the oil giant is poised to step down from processing claims so there's no overlap, redundancy and confusion over claims being awarded or denied.

Claims processing for damages related to the Gulf oil spill will start on August 23 for the compensation fund, and BP will be stopping all processing after Wednesday, August 18.

The newly operating processing center will deal with individuals and businesses, not the variety of government claims which will be and are being made. Government claims will continue to be processed by BP.

So far BP say it has paid out approximately $368 million in claims.

The Gulf Coast Claims Facility, will be filled by BP with $5 billion annually for a period of four years, topping off at $20 billion.

BP (NYSE:BP) Claims System From 'Crivella West' Now in Place

A new claims system has now been put in place to help streamline the process for preparing and filing claims for damages from the BP (NYSE:BP) oil spill.

Crivella West is a company which provides risk management and litigation systems for business and legal firms in general.

They reportedly worked together with attorneys located in the Gulf region to create the platform which is now available for access.

The new system is named 'Crivella West Knowledge Kiosk BP Claims Central,' and is on the Internet for shrinking the heavy burden related to clerical work which has been part of the reason for delays in payment claims, which have the potential to clog the process up even more as the escrow fund overseen by Kenneth Feinberg gets closer to launching.

One report describes the system like this:

"The system bridges the claimant, counsel and the Fund from which claims against BP are paid, the company says. It includes an executive dashboard that displays and reports the status of all claimants, automating client intake, case evaluations and documentation. The platform also feature deadline tracking and alert systems, an automated correspondence system and a standardized submissions package for adjusters."

According to the Web site of BP, about 151,000 claims have been filed so far, and many more are arriving daily. Of those 44,000 have been paid a minimum of one time.

So this should help immensely to expedite the process and get money to those who are owed it, but more importantly, need it quickly at this time.

Realtors, Golf Courses Seeking BP (NYSE:BP) Money

Now that Kenneth Feinberg is close to beginning the claims process in the BP (NYSE:BP) liability cases, a plethora of different scenarios are emerging which attempt to create a causal relationship with the accident.

While there has already been a decision by Feinberg and his team to limit most claims paid out to a 50-mile distance from the coast, that hasn't stopped claims coming in from all 50 states in the nation.

A couple of categories that have emerged are Realtors and golf courses, which have been attempting to persuade Feinberg they suffered losses from the oil spill.

Feinberg, to a limited degree, has been convinced by the Realtors, setting aside what he has called a “modest amount" for them, although he's holding the exact number close to his chest.

The golf course owners on the other hand haven't seemed to get the same reception, although there is a lot of time before final decisions will be made.

Measuring rents, sales and commissions against prior years, even when having to balance it with the recession and jobless numbers, is easier to figure out than metrics from golf courses like play volume and tee sheets.

While it won't be surprising to hear golf courses get something, it's not likely to be a whole lot, but something is better than nothing in slow times like these.

Feinberg does have to balance direct compensation against causal compensation, and keep in mind the limited amount of capital available.

Claims Against BP (NYSE:BP) Coming From All 50 States

In a very predictable outcome, claims from all 50 states have now been made against BP (NYSE:BP) and their escrow fund administered by Kenneth Feinberg.

Everyone's trying to get their hand in the cookie jar before the $20 billion runs out, although only about $5 billion a year will be available over the next four years.

Feinberg said last Friday in an interview, that "The farther away you are from the Gulf and the Gulf shore the less likely it is that you will have a valid claim. But I will take a look at each claim.”

The problem from this type of greed is it delays payment to those who are real victims of the oil spill.

So far over 142,000 claims have been made representing all the states in the nation.

The compensation fund is set up to deal with victims of the oil spill who are close to the disaster. Those further away will either be denied, or go a different route to deal with the issue.

One problem is Feinberg announced the ease of terms and generosity he was going to employ in operating the fund, inviting all the cons and opportunists to come out of the woodwork.

Parameters that will help deal with that, for example, are in the case of hotels. If a hotel is further inland than 50 miles, there is little chance they'll receive compensation from the fund, according to Feinberg.

It's possible even with the opportunists, the number of claims may not be as high as thought, as natural cleansing properties of the Gulf, along with evaporation, made the amount actually left in the area far below what it was thought it would be.

Feinberg said concerning that he'll just have to "wait and see."

Realtors Want Their Chunk of BP (NYSE:BP) Fund

In what will probably be the most challenging and controversial part of the BP (NYSE:BP) escrow fund, realtors are now entering the fray to get their piece of the $20 billion compensation fund pie.

One major problem is how does Feinberg and his team separate what is a horrific real estate market in general, from the real effects of the oil spill?

How do you separate claims with nothing to do with the spill and have everything to do with a down real estate market, from those that are.

Commercial real estate is going to be a disaster in the second half of 2010, and that has absolutely nothing to do with the oil spill, but rather the banking and mortgage fiasco.

This would require the fund to measure past sales before the real estate crisis, during the crisis, and now. But then they have the task of determining which individual properties were affected by the crisis. How could anyone prove it or make the determination?

Feinberg's response to the pressure from powerful organizations like the National Association of Realtors isn't comforting at all.

Feinberg has publicly questioned a number of claims from agents and brokers from a legal standpoint, but said they have made a “credible argument” that “something should be done for them.”

This is why you don't create czars to run these types of funds. He's going to treat it like a government operation while using BP's money.

Why should something be done for these realtors and agents, who in some cases are undoubtedly trying to use the fund for personal gain and not compensation for loss?

In other words, it's a great opportunity to cash in on the disaster by generating income they weren't producing at all in the market.

Why should Feinberg even make the statement they "something should be done for them?" Something should be done only if there are individual cases that an be proven to be caused from the BP oil spill. Anything else isn't legitimate.

It sounds to me like these Gulf real estate agents and brokers are attempting to use the fund as a source of jobless benefits because of the slow market.

To make it worse, Feinberg and the realtors are negotiating on criteria to be used in the claims. How in the world does an outside organization weasel its way into this fund and get a place at the table to decide the criteria for themselves?

This is why I've opposed the creation of this fund from the beginning, and we're seeing the reasons why in this money grab by the real estate industry.

Feinberg Says BP (NYSE:BP) Compensation Fund Better Than Lawsuits

Kenneth Feinberg, who will be administering the BP (NYSE:BP) compensation fund, said those who are economically affected by the oil spill would do better if they went the route of filing claims rather than a lawsuit.

According to Feinberg, when talking to potential claimants in Florida, the fund would not only be a faster way to get paid, but one which would pay more than legal action would.

“You will get quicker more generous treatment than if you file a lawsuit,” said Feinberg.

One thing everyone needs to consider is if you do accept payment from the fund, there is no longer any option to sue BP, as to receive the payment claimants will have to waive the right to legal action.

Feinberg explained, “If you want full and final payment for all prospective loss ... come in, file a claim, and if you accept the check that is offered, then you waive the right to sue BP. Your choice – 100 per cent your choice.”

Individuals who qualify will be able to receive a check with 24 hours of filing a claim, while businesses will be compensated within a week of filing their claim.