Spills-claim czar is not independent of BP, judge says

Associated Press

NEW ORLEANS

The embattled administrator of the $20 billion compensation fund for Gulf oil-spill victims is not independent from BP and must stop telling potential claimants that he is, a federal judge ruled Wednesday, just hours after the fund czar released details on how final payments would be determined.

U.S. District Judge Carl Barbier said in a ruling that he is ordering BP, claims czar Ken Feinberg and any of their agents to change the way they communicate with people seeking money from the fund.

Barbier said Feinberg must disclose clearly in all communications that he is acting for and on behalf of BP in fulfilling its obligations as the responsible party under the Oil Pollution Act.

Barbier stopped short of ordering changes to a release form people who accept final payments from the fund must sign. He asked lawyers to submit additional briefs to the court on that, as well as address the question of whether BP is complying fully with the law in the processing of claims.

Feinberg was appointed last June by BP and the White House to oversee the claims fund. His Washington law firm was paid $850,000 a month for its work through the middle of January, and now Feinberg is discussing with BP how much he should be paid going forward.