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BP Oil Spill Update

BP Oil Spill Update. Rhon Jones Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. BP Oil Spill Update: Topics. Where are we now: Damages & Findings Types of Claimants & Claims Gulf Coast Claims Facility Multi-District Litigation Still Many Unrepresented Clients.

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BP Oil Spill Update

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  1. BP Oil Spill Update Rhon Jones Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

  2. BP Oil Spill Update: Topics • Where are we now: Damages & Findings • Types of Claimants & Claims • Gulf Coast Claims Facility • Multi-District Litigation • Still Many Unrepresented Clients

  3. It’s been 14 months. Where are we now?

  4. Commission Findings on the cause and scope of the oil spill • Jan. 11, 2011: The National Oil Spill Commission released a 372-page report on the Gulf oil disaster. • Findings: • “The Macondo disaster was not inevitable” • “All of the technical failures at Macondo can be traced back to management errors by the companies involved in the incident.”

  5. The Damage • Over 200 million gallons of oil gushed into the Gulf • Over 1.8 million gallons of dispersants used • 665 miles of coastline contaminated • 86,985 square miles were closed to fishing at the peak of the crisis • Estimated 23 billion dollar blow to tourism industry

  6. Other Findings likely related to the spill • More sea turtles died this year than the past 20 years—4 to 6 times above average • Baby Dolphin deaths at an all-time high • Submersible discovers layer of dead animals and oil 4 inches thick along the Gulf sea floor • The lowest layer of water in the Gulf, known as the benthos, has been “totally devastated”

  7. How long will it take the Gulf to recover?

  8. BP/GCCF Predictions • The GCCF and BP predict that most of the Gulf will fully recover by 2012, with oyster beds recovering by 2014 • These predictions are based on the report of Wes Tunnell, a marine biologist at Texas A&M • Tunnell’s report acknowledges that “establishing an exact recovery time is entirely impossible”

  9. Scientific Predictions • Dr. Samantha Joye of UGA predicts that it will take 10 years to fully determine the impact of the spill • Dr. Joye also thinks that it will be 2012 before we really start to see the effect on the fisheries • Remembering Exxon Valdez: the collapse of the herring population did not occur until 4 years after the spill

  10. Economic Predictions • Perception damages may linger long after the Gulf is declared “clean” • “A review of disasters affecting tourism destinations reveals that the impact endures beyond the resolution of the crisis itself due to brand damage and ongoing traveler misperceptions” Oxford Economics study

  11. Types of Claimants & Claims

  12. Types of Claimants • Personal Injury • Fishermen • Business Losses (Restaurants, Hotels, Etc.) • Property (Lost rent and loss of value) • Lost Wages (Individual claimants) • Government Entities

  13. Types of Claims • Oil Pollution Act (OPA) Private Claims • Damage to Real or Personal Property • Damage to Profits or Earning Capacity • Loss of Subsistence Use of Resource • OPA Government Claims • Destruction of Natural Resources • Loss of Tax Revenue • Cost of Increased Public Services • Robins Dry Dock Claims • Tort Claims

  14. 2 Tracks to Recover Damages • Gulf Coast Claims Facility (GCCF) • Administered by Ken Feinberg • Interim and Final Claims • Multi-District Litigation (MDL) • MDL No. 2179 • E.D. of Louisiana • Judge Barbier

  15. GCCF

  16. GCCF • Oil Pollution Act (OPA) mandates that responsible party accept claims • Initial BP Claims Facility Failed • BP Execs selected Feinberg to administer $20B Fund • GCCF Opened on August 23, 2010

  17. GCCF Options • Emergency Advance Payment • Ended Nov 23, 2010 • Interim Claim • Past damages, no release of legal rights • Quick Pay Final Claim • Eligible if received emergency or interim • Release legal right • Full Review Final Claim • Past and future damages, waive legal rights

  18. GCCF Statistics • Total Claimants: 495,162 • Total Paid Claimants: 170,253 • Emergency: 168,923 • Interim: 1,909 • Quick Pay: 93,951 • Final: 56 Note: There is overlap with these categories • Claimants represented by Attorney: 19,793 Numbers as of Mar 7, 2011

  19. GCCF is Not Independent • Feinberg routinely claimed that the GCCF was independent of BP • On Feb 2, 2011, Judge Barbier found that the GCCF was NOT independent of BP • Mandates of the Order • GCCF cannot contact represented claimants • GCCF cannot claim to be independent • GCCF must notify claimant of right to counsel • GCCF cannot give legal advice • GCCF must disclose option to join MDL

  20. MDL 2179 Judge Carl Barbier • Test trials are under consideration for 2011 • The test trials will give everyone involved a better idea of what kinds of damages can be expected • The Limitation Trial is set for February 2012 • Short Form Joinder • Answer to Transocean Limitation (Apr. 20 Deadline) • Claim in Transocean Limitation (Apr. 20 Deadline) • Complaint (Assert Claims in Master Complaint)

  21. MDL 2179 • Beasley Allen is playing an integral role in the litigation • Rhon Jones is one of 15 lawyers selected to be on the Plaintiffs’ Steering Committee • BA is active regarding the economic loss models for all claimant categories, including the states • BA is active regarding the science of the case

  22. Thank you. • Rhon Jones • Rhon.Jones@beasleyallen.com

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