Ken Feinberg and the BP Oil Spill fund, what is it all about?

One of the most over looked elements of the BP Oil Spill fund, is that while the negotiation, creation and selection of it's administrator have been highly publicized, the actual details of what is going on with the fund are amazingly sparse. Ken Feinberg, WSJ Photo

Some of the questions that have yet to be asked, or answered, such as "Is the fund set up as a 468B Qualified Settlement Fund", or " Is there even any money in the account and where are the funds being held"; or how about " What role can lawyers play in the process of negotiating eventual settlements"?

My point is, the despite the huge publicity and the daily road shows and press access of Kenneth Feinberg to drum up support, very few lawyers or clients have any clue as to how this fund is going to work and if it even makes sense for their clients.

Those of us in the settlement profession have other questions, such as the ability of clients to structure their claims over time to reduce tax hits on these taxable damage claims, or are the clients aware that legal fees on their cases are NOT tax deductible and how does that factor into their decision process to engage counsel to handle their settlement claims. Again, these questions remain to be answered, or even asked, of the people running the fund.

Into that breach of misinformation and lack of information I offer you two new videos from Attorney Rick Kuykendall, who is intimately involved in the negotiations relative to the role of trial lawyers of the BP Oil Spill fund and how it will ultimately be administered. His view and thoughts on the fund will assist lawyers and settlement professionals in how to counsel their clients and adjust their professional practice if they make the decision to jump into the BP Oil Spill claims process. 

I also provide a link to the excellent interview this weekend in the WSJ of Ken Feinberg, one that lays out some of the issues and concerns and starts to develop a frame work on how this process is going to work.

Ken Feinberg Wall Street Journal Interview Link.

As the BP Oil Spill compensation fund continues to take shape and the rules, regulations and process of how it will work becomes clear, we will cover it hear on both the Legal Broadcast Network and The Settlement Channel. It is going to be vital to have accurate and timely information on this fund and we will continue to bring you the lawyers and experts who are involved in it so you can decide, either as a claimant, lawyer or settlement professional how to proceed in this land mark case.

Comments

[Rose Bud Productions]

My concerns are will the claims be settled in one lump sum or will they be paid over the four year period it will be to build up the trust fund. We are a entity that needs a huge settlement to continue our project, employ two hundred and some people in Lousiana and also to beable to put various businesses to work. The entire idea is to get the people to work and also to put back into the economy. So my questions are what will qualify for settlement when it comes to commercial businesses, how long will it take and finally will it be in one lump sum? We need it done fast, in one lump sum and also we need to settle for what we are asking, not pennies on the dollar. We are also applying for the emergency part so that we can stay afloat while it settles. Also will be have to bring a lawyer on board to get what we need and if we take on a lqyer will we have to pay taxes on the entire settlement or just what we take in as a business. Because if your attorney gets a percentage and you have to pay taxes on that as well shouldnt the laywer have to pay that part of the taxes. Please email me with the answer as I am concerned. Email address posted above. Thanks