BILOXI, MS (WLOX) -
The Gulf Coast Claims Facility has frozen all payments for oil spill losses effective last Friday, December 30, 2011, until they can get clarification on a federal court order.
On December 28, U.S. District Judge Carl Barbier issued a court order that any defendant receiving a settlement from the GCCF since November 7, 2011 must withhold six percent of that settlement in a court-supervised account to cover fees for attorneys involved in federal litigation against BP.
The judge reasoned that those claimants would have benefited from the work of the attorneys, who would otherwise go uncompensated.
Tuesday, the Claims Facility issued a letter informing the court that it would be stopping claim payouts until there is a clear understanding of the court order. GCCF wants to alter the system to automatically deduct the six percent fees.
The letter also seeks to determine GCCF's responsibility in getting retroactive payments from people who received money between November 7 and December 30.
It is unclear how it will take before payments resume.
The Court's Order and Reasons can be viewed by clicking here. The letter of the GCCF to the Court, dated January 3, 2012, can be viewed by clicking here.
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