BP accused of coercing spill victims to sign final settlements

Attorneys for businesses, property owners and other victims of the Gulf oil spill say that BP Plc is putting intense pressure on them to sign approval for inadequate compensation as a final settlement because they can no longer afford to wait for just compensation.

BP’s tactic, described as “coercive action,” is designed to wait out victims who can no longer afford to stand by for just compensation, the attorneys said in papers filed on July 25^th in federal court in New Orleans.

BP is accused of failing to “comply with the letter and spirit of OPA (Oil Pollution Act),” which is a law that provides an interim claims process, the filing states. However, the $20 billion Gulf Coast Claims Facility (GCCF), which BP set up in 2010 to handle emergency, interim and final payments, is in reality convincing victims “that the only compensation available is a minimal set amount that comes with a full release attached,” the lawyers said.

The attorneys also requested U.S. District Judge Carl Barbier to override the authority of releases that have been signed by victims who have already been paid out of the fund.

BP fund administrator Kenneth Feinberg said that the GCCF will respond to the attorneys' filing.

Source: Bloomberg