BILOXI, Miss. – July 19, 2010 – Kenneth Feinberg, the Washington attorney who will take over BP’s $20 billion claim fund within the next few weeks, assured Gulf Coast residents Friday that he will compensate eligible people and businesses damaged financially by the Deepwater Horizon catastrophe.

“I am beholden neither to the administration nor BP,” said Feinberg, who has cemented a reputation for fairness and compassion as administrator of the 9-11 Victim Compensation Fund in New York. “I work for the people in the Gulf.”

Feinberg has been hosting town hall meetings in the Gulf states to explain in layman’s terms how the fund will work. His approach was straightforward when he spoke to an audience of more than 200 on Friday at the Coast Convention Center in Biloxi.

He said his job is to distribute money to people, and businesses large and small, with proven losses.

“I think you’re crazy if you don’t sign up,” Feinberg said. “It’s up to you.” He said people are free to hire attorneys, but they should be prepared to spend five years in litigation. They are also welcome to have attorneys accompany them to file claims, or to consult one of the pro bono lawyers he is lining up to help with the process.

He credited BP with already having paid $200 million in claims. That money, he said, is not being deducted from the $20 billion fund. BP has pledged to continue honoring claims if the initial fund is drained.

A couple of major changes to the claims process are coming. Feinberg wants to expedite payments to businesses. He said those payments have moved more slowly than individual claims.

Rather than monthly payments for emergency claims, which Feinberg called “ridiculous,” the independent fund will offer emergency payments for six months of losses. People who accept those payments will not give up any rights to later sue BP.

Individuals also will be able to calculate and submit claims for their total losses, but must sign away their rights to sue in accepting lump-sum payments.

Total-loss claims will be verified by experts before payment. “If you think it’s fair and time to move on, take the check,” Feinberg said. “If not, don’t take it.”

Feinberg said the fund will not pay claims for mental anguish or suffering, but will pay claims for physical illness, injury or death.

He said he will “bend over backward” to help people document their financial losses so they can get paid. His office will be watchful for fraud.

After his 30-minute presentation, Feinberg answered questions. He offered answers that were direct and to the point. Several times he acknowledged he did not have an answer yet.

Many of the questions came from real estate professionals who said the oil catastrophe has stifled the market. One broker wanted to know if a claim would be paid when property was under contract and it could be proved the deal fell through because of the oil disaster.

“This is tough,” said Feinberg, who added he has received a lot of questions about real estate. “I understand that argument. I don’t have an answer yet to that argument.” He said he won’t rule out payment.

“We’ll have to just work our way through this,” he said.  

Feinberg made it clear from the start he will be working in the Gulf states.

“You can not explain this program from Washington,” he said. “You can not run this program from Washington. You’ve got to come down to Mississippi, Louisiana, Alabama and Florida and explain this program to the people, explain what this program can and cannot do.”

© 2010 The Sun Herald (Biloxi, Miss.), Anita Lee. Distributed by McClatchy-Tribune News Service.

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