Posts Tagged ‘ claims ’

A new “standard” is needed for claims

Twice in recent months, I’ve read about companies getting into hot water over their handling of damage claims in the wake of accidental events.

First, BP was taken to task for using waivers and spill settlement agreements that limited the right of volunteer oil-spill responders and coastal residents to sue the company (BP told to stop distributing oil spill settlement agreements, CBS News, May 3 2010).  Then, in August, similar complaints were leveled against Enbridge, following its pipeline spill in Michigan, alleging residents who were filing for damages were required to sign a “full and final settlement release form” that discharged liability against the company (Enbridge denies allegations of coercion, Globe and Mail, September 1 2010).

In both cases, the companies argued the forms they were using were “standard” forms (BP admits “misstep” over oil spill claims waivers, Reuters, May 3 2010).

I understand the need for the companies to establish a robust claims process and to protect themselves from illegitimate and unreasonable claims.  However, in these cases, the “standard” of care was inappropriate and unfair. Continue reading

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