Friday, June 18, 2010

Impact of BP $20 Billion Fund on Oil Spill Litigation

BP's agreement to set aside $5 billion per year for the next four years is likely to deter some litigation, according to an article titled "Claim Fund Offers Shield from Suits" in today's Wall Street Journal. Here's an excerpt:
Some of the plaintiffs may now end up dropping their suits—or never file suit in the first place—and tap the fund, which would save them from paying big attorneys fees. "They're going to have to think about this," said Richard Nagareda, a law professor at Vanderbilt University. "The fund promises a much faster payout."
"Make it Right," BP's commitment to restoration, recovery, and reimbursement has 900 people devoted to handling claims on a 24/7 basis in over 25 locations. This easy access to the claims process undermines the need for actions that would otherwise be filed in court.

Of course, oil is still spilling and the magnitude of damages in terms of duration and scope remain to be seen.

No comments: