Interesting, and about time. His firm has received $850,000 a month from BP. Glad to see this ruling.
From the UK Press Association:
BP payment Tsar 'not independent'US District Judge Carl Barbier said he was ordering BP, Mr Feinberg and any of their agents to change the way they communicated with people seeking money from the fund.
Judge Barbier said Mr Feinberg must clearly disclose in all communications that he was acting for and on behalf of BP in fulfilling its obligations as the responsible party under the Oil Pollution Act.
The judge stopped short of ordering changes to a release form that 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 was complying fully with the law in the processing of claims.
..."Lead lawyers in hundreds of claims filed over last year's Gulf Of Mexico rig explosion and massive oil spill had asked Judge Barbier to intervene in the communications between Mr Feinberg and fund claimants. The attorney generals in Mississippi and Louisiana have backed the motion and Florida joined in on Wednesday.
Here is more on the topic from Reuters:
Judge finds Ken Feinberg not independent of BPBy Tom Hals WILMINGTON, Delaware | Wed Feb 2, 2011 11:16pm EST
WILMINGTON, Delaware (Reuters) - The administrator of BP Plc's $20 billion (12 billion pounds) fund to compensate victims of the Gulf oil spill is not independent and the oil company must refrain from calling him "neutral," a federal judge ruled on Wednesday.Judge Carl Barbier also ruled that BP must disclose in all communications that the Gulf Coast Claims Facility (GCCF) and its administrator, Kenneth Feinberg, are acting on behalf of BP in fulfilling its legal obligations under the Oil Pollution Act.
"While BP may have delegated to Mr. Feinberg and the GCCF independence in the evaluation and payment of individual claims, many other facts support a finding that the GCCF and Mr. Feinberg are not completely 'neutral' or independent from BP," said the New Orleans federal judge in his 15-page ruling.
BP said the claims facility will "immediately implement those provisions of the order which are not already part of the GCCF's procedures."
The town hall meetings have gotten very contentious. I have been reading that more of the meetings have had to hire more security.
Angry town hall with Feinberg in Ft. Walton.A packed house-- People spilling out into the hallways wanting answers from Ken Feinberg.
"I understand the inconsistencies, that's one reason I’m here. It's wrong. It's got to be corrected, but it's not like we're not paying out the money, we're paying out the money--the problem is, there are too many inconsistencies, there's not enough transparency and we're gonna deal with those problems" said Feinberg.
But for many, time has not been on their side and those problems are quickly turning into bigger ones. You could hear it in their voices with the mounting frustration rattling the room.
"My name is 1034444" says one angry resident."
Since he has been found not to be independent of BP...which we knew already anyway...he should be asked to step down. Someone without such conflicting interests should take over.