According to one reporter, Kenneth Feinberg is viewed in Louisiana as "a smooth-talking carpetbagger who doesn't deliver on promises." He describes himself as "bloodied but unbowed" Are folks angry because they haven't been fairly compensated, or is it his arrogant, larger than life personality? Apparently he pissed off a lot of New Yorkers also.
When BP and President Barack Obama first chose Feinberg to run the $20 billion oil spill fund, he was known for masterfully compensating victims of Agent Orange, the Sept. 11 terrorist attacks and the Virginia Tech shooting. It appears he has earned the opposite reputation on the Gulf Coast. But the truth is that any effort to put a dollar value on lost lives or lifestyles will rub many the wrong way, and Feinberg -- the putative hero of Sept. 11 compensation -- actually made many enemies in that process, too.
"I was constantly attacked by 9/11 families," Feinberg said in a documentary about that Victim Compensation Fund, called "Out of the Ashes: 9/11."
The film shows that many families came to despise Feinberg for making them justify their lost loved ones' worth, even though that's precisely what he was tapped to do -- and did for no pay. Marilyn Berger, the law professor at Seattle University who made the film, said Feinberg's strong personality exacerbated his troubles. Berger believes that's also what has fueled the controversy surrounding his work on the BP fund.
"He never should have taken that role, but his ego wouldn't let him turn it down," Berger said. "He thought it would be a cakewalk because he would have all this money at his disposal and he could go right in and start paying. Until he gets slapped around a lot, he doesn't really get it."
The numbers of resolved claims will never tell the whole story. Many waited months for checks, were forced to resubmit documents, or took much less just because they needed to pay their bills. Medical claims, except for physical injury are not being paid.
So what has Feinberg accomplished thus far.
So far, about 116,000 claimants have taken a final payment from Feinberg -- or 56 percent of those who have sought a settlement that bars them from pursuing any further spill-related claims in court. Those are Feinberg's clear wins.
Another 50,000 people and businesses have filed lawsuits against BP, rig owner Transocean and others for causing the spill. But any of them can withdraw at any point if they get a better deal from Feinberg, meaning they're still in play for him.
Then there are the 150,000 claimants waiting for a final offer or pursuing interim payments on a quarterly basis while they assess their damages. They also could take the cash, or file suit, depending on how Feinberg does.
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Eight months after Feinberg took over the claims process from BP, his organization has paid 176,000 claimants more than $3.7 billion, about $21,000 on average.
The $21,000 average is disturbing since we know that some businesses received hundreds of thousands, and one particular claim, not vetted by Feinberg received millions. Also disturbing is the number of "final" claims that have been "quick settlements" These are payments to anyone who received an emergency payment, $5000 for an individual, $25,000 for a business and require no further documentation. Worry is that folks are being forced to accept these payments, (and acceptance means giving up your right to bring a civil lawsuit against BP), because of desperation
Nearly 90 percent of the final payments to date have been "quick payments" of $5,000 for individuals and $25,000 for businesses. Feinberg created that option in December to get easier, non-recurring claims out of the way. It certainly did that. But payments for the more complex claims haven't followed.
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Feinberg has paid fewer than 10 percent of the claims from 100,000 people and businesses seeking full reviews, not the flat quick payments.
Fishers and business claimants are especially upset that he has paid fewer than one in every 10 quarterly interim claims -- because that method of payment is available, by law, as a way of offering rolling compensation to those still suffering losses, without forcing them to sign away their right to sue later on.
Critics complain that Feinberg is sloughing off on interim payments to protect BP from open-ended liability. On the flip side, some people say the delay in interim payments has forced victims to take inadequate quick payments out of desperation.
As usual, it's the little guy that gets hurt.
Jackie Jackson of Metairie, a longtime waitress at Carmine's Restaurant in Metairie, was laid off last year. After sending her documentation to the claims facility no fewer than six times, she was three months behind on rent and about to be evicted. Last week, she took the $5,000 quick payment so she could pay her landlord and cover two more months of bills while she looked for a new job. She believes a full settlement would have covered about $19,000 in lost earnings.
"I signed the waiver, but I sent in a paper stating I signed it under duress," she said. "If I could have had more time, it would have worked much better."
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