Florida officials on Tuesday began mapping out a comprehensive process to recoup state and local government losses from the BP oil spill, hoping to be able to do it without having to go to court.
Assembled by Florida Gov. Charlie Crist and Attorney General Bill McCollum, the panel is expected to make a list of recommendations for state agencies to follow to recoup lost revenue brought on by the spill that began April 20.
“We don’t know how long it’s going to take,” McCollum said prior to the meeting. “We don’t know the severity of it at the end of the day. What we do know is that we need a process. We need to be prepared.”
Making it clear that the panel’s actions are not a precursor to an imminent court challenge, the panel’s co-chairman, former Attorney General Bob Butterworth, said the state’s best course of action would be to avoid a lengthy court battle similar to the federal case against the Exxon Valdez, the 1989 disaster that still has ongoing cases in the courts.
“Restitution is the most important thing to obtain as soon as possible,” said Butterworth. “We’ve learned from the Exxon Valdez that if we go to court it may take you 20 years.”
Co-chairman Jim Smith, another former attorney general, echoed the need for a “measured, level-headed response.”
“Everyone’s natural reaction is to sue, sue, sue,” Smith said. “But the potential consequence of filing suit immediately is that BP stops compensating claims.”
“This is not a preparation for litigation,” McCollum. “It is a background where we could conceivably go to litigation someday.”
State officials outlined a litany of initial BP missteps in the private claims process including a lack of communication with individual claimants, non-standardized documentation requirements and erroneous statements on how quickly claims would be paid that led to confusion and angst among those who have been put out of work by the spill.
Many claimants were also unaware that the claims were being handled by Esis, a Philadelphia-based third party, leading many to become leery of the company, which was set up by BP to handle claims.
“The lack of information flowing from BP has led to much ill-will,” said Bill Stewart, a staff attorney in McCollum’s office.
McCollum and others have asked BP to set up an escrow account to pay claims. McCollum has asked that $2.5 billion be set aside to more quickly pay claims. President Barack Obama is expected to call on BP to set up such a fund in an address to the nation Tuesday night.
By Michael Peltier
The News Service of Florida
