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$20 Billion Oil Spill Fund: Only For Those Who Won?t Sue

By David Johnston

Companies and individuals hoping for a financial settlement from the $20 billion oil spill compensation fund will probably have to waive their rights to sue BP and other corporations responsible for the spill, The New York Times reported on Friday, citing internal documents from lawyers handling the fund.

The Times reported that the documents provided the first authoritative indication of the rules that will govern the fund and be imposed on those seeking reimbursement, including the waiver of litigation rights.

More than 300 lawsuits have already been filed in federal courts in five Gulf Coast states. Plaintiffs in those cases, if they want compensation from the fund, face a choice of dropping their suits or pursuing costly legal actions that will likely take years to resolve in court.

The fund is being administered by Kenneth R. Feinberg, a well-known lawyer in Washington, along the same lines and with similar eligibility requirements as a fund he supervised for victims of the 9/11 attacks, The Times reported.

Documents cited by the newspaper, on which it said it based its account, included  e-mails, draft and final versions of the protocols, claim forms and legal notes about the administration of the fund.

Full post as published by Main Justice on August 20, 2010 (boomark / email).