Gulf Oil Spill Business Resource Guide

The Gulf Oil Spill is an environmental disaster.

Don’t let it be a business disaster, too.

There are very few law firms in the country with substantial experience fighting and successfully litigating against big oil in the courtroom. We are one of those firms.

If you are a business owner and have been adversely affected by the Gulf Oil Spill, you are undoubtedly confronting unprecedented decisions.

Chief among these decisions is how to seek compensation for your business losses. We applaud and support the President’s decision to establish the BP fund. However, we want to communicate to you, the business owner, that you would be well served by seeking independent legal counsel to advise you regarding your fund application.

Baron & Budd, P.C. can assist you with your fund application. We provide this service on a contingency fee basis. Meaning you do not pay any attorney fees unless you receive compensation.

We urge you to seek the advice of legal counsel to ensure that your losses are appropriately calculated and that you can obtain a fair and full recovery from available resources.

With a 30-year history of “Protecting What’s Right” for individuals, businesses, municipalities and states across the nation, Baron & Budd is able to handle your business loss claims from start to finish, including litigation if the amount awarded by the fund does not cover your losses.

*No results implied. Each case must be individually evaluated, and past successes do not guarantee future results.

WHAT DOES THE BP FUND MEAN TO YOUR BUSINESS?

The Fund Is Meant to Help You Get Your Money Faster.

The establishment of the BP fund means you have the opportunity to submit claims for losses without having to go through the court system. The idea is to make it easier and quicker for you to receive compensation for your loss. This is especially helpful for smaller businesses that need immediate help.

Since the spill is ongoing, a provision has been made for businesses to receive short-term compensation now with the option of receiving full compensation once the extent of the damages becomes known.

While the fund is meant to simplify and quicken compensation payments, it is not intended to deny your constitutional right to a trial by jury. If your claim is denied or the amount offered is less than fair, you have the right to file a lawsuit to recover damages.

Additionally, the fund does not “punish” you if you choose to present a claim via representation by an attorney. You are entitled to the representation and counsel that you feel you need.

WHY DO YOU NEED AN ATTORNEY IF YOU ARE SUBMITTING CLAIMS TO THE FUND?

You only have one chance to obtain a recovery for spill-related losses to your business. It is in your best interest to have every available resource on your side.

An attorney can not only help you make claims to the Fund but also can advise you about the best way to present claims so that the dollar value attributed to your loss is maximized appropriately. Some firms, such as Baron & Budd, have additional resources to ensure that your claim is handled properly. For example, we have amassed a team of expert witnesses who can determine not only present-value losses but also long-term economic losses. In addition, we have expertise in this area of the law and can make sure that it is applied justly to your situation.

Since the Fund has the authority to discount and even deny certain claims, we will advise our clients as to their best course of action both inside and outside the Fund -- whether your claim is against BP and/or other responsible parties such as Halliburton, Transocean and Cameron.

Should you receive an offer from the Fund, we can properly advise you on weighing your options: accepting the Fund offer versus the likely result of pursuing your claim in court.

WHAT RESOURCES DOES BARON & BUDD BRING TO THE TABLE THAT I CAN’T GET WITH THE LAW FIRM THAT HANDLES MY GENERAL BUSINESS MATTERS?

Baron & Budd Has Held These Companies Accountable Before.

The companies responsible for the Gulf Coast oil spill -- BP, Transocean and Halliburton --are large, powerful companies. Fighting a company of the size and wealth of a Halliburton or BP takes tremendous resources in time, experience and money. Baron & Budd has gone up against BP and Halliburton before. We’ve taken on big oil and uncovered some of the secrets that the oil industry doesn’t want regulators or the public to know. A June 2010 article in the National Law Journal recognized Baron & Budd as one of the major firms with experience fighting big oil.

BP

In 2008, the Baron & Budd water team, headed by shareholder Scott Summy, successfully litigated the first multi-jurisdictional MTBE groundwater cases in the U.S. on behalf of over 150 plaintiff public water systems in 17 states. The resulting settlement was a landmark: nearly $450 million in cash to compensate these water providers for the costs of remediating MTBE from their water supplies.

Halliburton

When a Halliburton subsidiary filed for bankruptcy reorganization, Baron & Budd stepped in to protect the rights of the company’s asbestos victims. Russell Budd, the firm’s managing shareholder, negotiated with Halliburton and became the chief architect in establishing a trust fund to protect present and future asbestos victims throughout the United States. The agreement reached between Halliburton and Baron & Budd created the largest asbestos trust fund of its kind anywhere in the world.

Exxon Valdez

Baron & Budd has a personal connection to the Exxon Valdez saga. Brent Rosenthal, a long time Baron & Budd attorney, represented the National Wildlife Federation in the Exxon Valdez litigation. For his “outstanding contribution to environmental protection and the public interest,” Brent received the 1993 Public Justice Achievement Award from Trial Lawyers for Public Justice.

* No results implied. Each case must be individually evaluated, and past successes do not guarantee future results.

HOW ARE PLAINTIFFS’ ATTORNEYS COMPENSATED FOR THEIR WORK ON FUND CLAIMS OR LAWSUITS?

Plaintiffs’ attorneys only get paid if you get paid.

Most plaintiffs’ attorneys work on what is called a “contingency fee” basis. A contingency fee allows people to secure legal representation without paying any money upfront.

Under the contingency fee agreement, a law firm’s fee is a percentage of their clients’ total recovery. If no money is recovered for the client, there is no fee and no cost to the client. Under this system, plaintiffs’ attorneys also advance the upfront expenses of litigating cases. If Baron & Budd successfully achieves a financial recovery for you, these expenses are then deducted from your portion of the total dollar amount recovered.

When it comes to assisting with fund claims, Baron & Budd will receive a percentage of the clients’ total recovery, as well as advance the upfront expenses of handling the claim. However, our attorneys are happy to help claimants obtain compensation from the fund for a reduced fee.

Bottom line: in a lawsuit, plaintiffs’ attorneys only get paid if and when they successfully recover financial compensation for clients. Similarly, in the claims process plaintiffs’ attorneys only get paid if they are successful. At Baron & Budd, we truly believe in doing What’s Right, so we are reducing our fee for representation with the claims process.

* No results implied. Each case must be individually evaluated, and past successes do not guarantee future results.

HOW ARE BUSINESS DAMAGES BEING CALCULATED?

BP leaves it up to the claimant to decide what best supports their claim. Working with an attorney can help you figure out what will get you the most money.

While BP offers a list of possible documents needed to support a legitimate commercial claim, the company ultimately leaves it up to the claimant to determine what documentation best supports their claim.

While it may seem unnecessary to hire an attorney when filing a claim, investing in an experienced attorney can make all the difference –especially since BP’s claims process is far more involved than what is required under federal law. An attorney can help counsel you as to the best course of action to take and negotiate with fund representatives so you may focus on the day-to-day needs of your business and family.

Some of the documents helpful in calculating your losses include:

• Federal income tax returns and all supporting documents from January 2007 through 2009.
• Copies of documents substantiating business cancellations (i.e. hotel and charter boat cancellations by previously booked clients).
• Financial statements for January 2007 through the present.
• Statements from claimants or witnesses on how the spill led to loss of income or earning capacity.
• Monthly income statements with details of al revenues and expenses from January 2007 to present.
• State sales and lodging tax returns from January 2009 to present.
• Business plans and projections as well as profit and economic forecasts of similarly situated business in the same industry.
• Daily and monthly occupancy reports for hotels occupancy reports and rates by property from January 2007 through the present.
• Accounting of revenues and commissions paid or earned.
• Any insurance the company may already have.
• Daily sales journals.
• Sales recipients.
• Payroll journals.

Using the above and possibly additional information, Baron & Budd will calculate your maximum return from the fund and fight on your behalf to secure it.

WHAT DO I DO ABOUT FUTURE LOSSES THAT I CANNOT YET ESTIMATE?

Investing in an experienced attorney can protect your future.

At this point, it is uncertain what exactly the far-reaching effects of the spill will be. Scientists and government officials are still studying how it will impact the environment, wildlife and businesses on the Gulf coast.

Most importantly, even if you received compensation for lost income in the past, you need to ensure that you will be compensated for future income. Since this is more difficult to estimate, working with an attorney can help you most accurately calculate what your future losses may be based on your past income.

WHAT IF I HAVE INSURANCE THAT IS PAYING ME FOR THE DAMAGES TO MY PROPERTY OR BUSINESS –DO I STILL NEED TO FILE A CLAIM?

Insurance may not be able to fully compensation you for your losses.

If you are fortunate enough to have insurance on your property or for your business, you can and should still file a claim to receive compensation from the fund.

While insurance can be helpful, it may not cover all your damages, especially unforeseen future damages. You also may not want to rely on your insurance company because their payments may affect your future premiums and your ability to obtain future insurance payments for damage or loss when there is not a responsible party who can pay.

It is also possible that your insurance company could try to recover expenses for money it paid out by filing a claim with the BP fund (commonly referred to as subrogation).

IF I AM ASKED TO SIGN SOMETHING THAT SAYS I AM WAIVING MY RIGHTS TO FUTURE CLAIMS OR A POTENTIAL LAWSUIT, WHAT SHOULD I DO? DO I HAVE TO SIGN TO GET SOME MONEY NOW?

It’s essential that you carefully read every piece of paper you are asked to sign.

You do not have to waive your future claims to get some money now. If someone tells you that you can get money in exchange for signing a document that waives your future rights or claims, do not rush to sign up. Make sure you carefully read everything that’s put in front of you before you sign. If the document uses words such as “waive,” “wavier,” “release,” “hold harmless” or “indemnify,” then you should speak with an attorney before you sign.

Just know that you should not sign anything that forces you to waive any rights to future payments, injuries or damages you may suffer just to receive interim payments. The Oil Pollution Act specifically says that the responsible party is supposed to make arrangements for interim payments and payments for short-term damages and that these payments will not rule out possible recovery of future damages not reflected in the paid or settled partial claim.

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