Schexnaydre Law Firm, LLC

UPDATE: Stay Order Still In Effect

by David Schexnaydre, Esq.

Although there are reports in the media and elsewhere that the Stay Order affecting claims of construction companies, agricultural firms, and professional services firms has been lifted, my sources with the Claims Administrator advise that as of the end of business today (March 1, 2013), the Claims Administrator has received NO OFFICIAL NOTIFICATION that the Stay Order has been lifted.  Thus, for now, the Claims Administrator IS NOT processing construction, agricultural, or professional services claims.  This may change on Monday, if the Claims Administrator is officially notified that the Stay Order has been lifted, if that is in fact the case, but as of now there is no change regarding the processing of those claims.

Unfortunately, there has been very little public information available about the details of the disagreement between BP and the Claims Administrator on how these claims were being evaluated.  The announcement I received simply stated that the disagreement had to do with "matching revenue and expenses, " and Judge Barbier's ruling in favor of the Claims Administrator was not made public.  

Thus far, the stay has lasted for about two weeks.  I do hope the stay is lifted next week so the Claims Administrator can get back on track evaluating the claims pursuant to the terms of the Settlement Agreement to which BP has already agreed.  While the Settlement Agreement does provide a mechanism for the parties to seek Judge Barbier's ruling on issues that arise during the implementation of the Settlement Agreement, I can tell you I have heard from many people who are very unhappy with BP asking Judge Barbier to reconsider his own ruling once he ruled in favor of the Claims Administrator on the issue.  

I also must say that in my many personal dealings with the Claims Administrator's accountants, I have found they are taking their jobs very seriously.  They are requiring our clients to meet the letter of the Settlement Agreement and they are requesting additional information any time there is a question about a certain entry on a profit and loss statement.  They seem to be very conscious of the fact that one day someone will scrutinize the analysis they did to make sure it was processed according to the terms of the Settlement Agreement.  So, it seems to me that both BP and the claimants can rest assured that the Claims Administrator's personnel are doing their job and doing it well. 

Let's just hope they can get back to the task at hand for construction, agricultural, and professional services claims in the very near future.

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Schexnaydre Law Firm, LLC
2895 Highway 190, Suite 212
Mandeville, LA 70471

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