Gulf oil dilemma: accept payout from BP fund or sue

Alabama seafood market owner David Scott faces a difficult decision as he tries to rejuvenate his business after the Gulf of Mexico oil spill: He can accept a piece of BP’s $20 billion claims fund—relatively fast, easy money—or sue the oil giant for a bigger payday, wait years and risk ending up with nothing. Thousands of business owners, fishermen and others along the Gulf Coast are confronting a similar conundrum. Those who accept a check for their long-term losses from the victims’ compensation fund will have to give up their right to sue BP. Scott, who runs Destin Connections Seafood Market in Montgomery, Ala., says business was off more than $49,000 in May and June compared with the year before. Scott says he is still weighing his options and waiting to see what BP is willing to offer. Right now, the BP compensation fund is paying businesses and individuals for their short-term losses, and those accepting such interim checks do not have to sign away their right to sue. But starting sometime after Nov. 23, and continuing for three years, the fund will compensate victims for long-term losses. Attorney Kenneth Feinberg, who is administering the fund under a deal between BP and the Obama administration, says those who file a long-term claim will get a preview of their potential payout before they have to decide whether to accept it. If they don’t like it, they can sue.