Oil Spill Fund May Not Deter Future Lawsuits
There is no doubting the vast reach of the oil spill’s affects on the livelihood and well-being of thousands of Americans. Ever since the April 20 Deepwater Horizon oil rig explosion, concern has mounted regarding whether those affected will receive substantial compensation for losses and damages. This concern is even greater for those who may require more time to accurately and fully determine their losses.
With various news sources reporting that applicants are being received for the $20 billion oil spill compensation fund, some attorneys are skeptical as to whether the fund will make litigation unnecessary and even think that it will cause several lawsuits to be filed as a result.
Another point of concern is that it has not been made clear at this time whether the oil spill fund will provide restitution for government entities or businesses that are located in areas quite a distance from the oil spill.
In being established to lower the number of lawsuits against BP, the Gulf Coast Claims Facility was meant to provide monetary compensation in a timely manner to those with the most urgent claims. This fund provides emergency relief covering only damages that have accumulated since the explosion and is also supposed to provide a final payment of damages. However, those who take the final offer of compensation relinquish their right to file lawsuits against BP, which is something that may or may not apply to other defendants.