BP, The oil company has spent tens of billions of dollars on environmental cleanup and on compensation for businesses with real losses. It’s waived the $75 million liability cap under the law and promises to spend whatever it takes to make things right.
They find a loophole to exploit—a misinterpretation by the claims administrator of the settlement agreement provisions for calculating a claimants lost profits.
So these lawyers start recruiting claimants and instructing them on how to game their numbers to show a loss of profit and therefore win compensation form BP. One law firm’s ad reads, “If the number work, there is not need to provide proof that BP caused your loss.”
Some AG’s are actively recruiting businesses to get a greater share of this fund for their states regardless of whether the claimant’s losses were due to the spill.
Thousands of claimants that suffered no losses are coming forward, obtaining outrageous windfalls and making a mockery of what in intended to be a fair and hones settlement process. (THE NEW AMERICAN WAY)
It means that next time a business will choose to litigate rather than settle, which will delay for years compensation to true victims while driving up legal costs and producing a major windfall for lawyers, not victims.
Source—Chamber of commerce, Thomas donohue