(EMAILWIRE.COM, October 16, 2011 ) Pensacola, FL -- What many small businesses thought would be a transparent, streamlined process to recover what they lost as a result of the BP oil spill has morphed into an ambush of red tape -- ending in smaller settlements and outright rejected claims.
“We didn’t meet the criteria,” Kim Vo, an owner of a shrimp processing plant in Venice Louisiana told My Sinchew.com, when describing her totally unexpected predicament.
Despite submitting 400 pages of invoices and tax records, Vo, like so many other small businesses in the shrimp industry, found that the the much- touted Gulf Coast Claims Facility, also known as GCCF, didn’t appear to be on their side – at all.
Creation of GCCF
GCCF was created as a result of BP and the White House coming to an agreement that a separate entity should be formed to fairly handle the $20 billion dollars BP set in escrow to pay for the cleanup and damages it caused in the greatest oil spill recorded in United States history.
The White House appointed Kenneth R. Feinberg, the attorney who oversaw settlement payouts for victims of the Sept. 11 terrorist attacks, as the third-party administrator whose job was to objectively oversee the Gulf-Oil settlements. At first, many individuals and small business claims were settled quickly. But as the process continued, many business owners began complaining the amounts being offered and the time it took to settle were slowing down – or coming to a complete halt.
Ironically, Feinberg, who originally was seen has a knight in shining armor, has now become a villain in the eyes of some in Gulf-Coast shrimp industry.
“I think right now he’s in the process of starving people out, trying to get people to sign off on these waivers,” Clint Guidry, president of the Louisiana Shrimp Association, told My Sinchew.
Some Damage Cannot Be Easily Repaired
It may take years for some businesses to recover from the long-term damage caused to the GulfÂ’s shrimp supply as a result of BP pumping 206 million gallons of crude oil into it.
Recently, Feinberg agreed to take another look at some of their damage claims, according to WWLTV. But he didnÂ’t agree to do so until receiving requests from local attorneys petitioning him on behalf of local restaurateurs, whose business is down because of a lack of local shrimp.
“The foreign shrimp or farm-raised shrimp really wouldn’t fit our menu here,” Pascal’s Manale co-owner Sandy DeFelice told WWLTV.
This makes it difficult for DeFelice and other restaurateurs to keep their doors open and their cash flow healthy.
“There have been times when we’ve had to shut down 2 or 3 times a week because the product is just isn’t there,” DeFelice said.
When Representation Makes Sense
Some in the business community find themselves reluctant to get legal representation, hoping instead that GCCF will promptly settle their claims. However, GCCFÂ’s s track record proves that this might not be a prudent course of action.
BP-Claim.com is a website devoted to helping people affected by the BP oil spill to find out what their options are in getting their settlements approved by the CCCF.
