BP Deepwater Horizon Settlement Claims Services
A recent BP legal settlement, related to the 2010 Gulf Oil Spill, presents a significant opportunity to a broad range of companies anywhere in the States of Mississippi, Louisiana, Alabama and parts of Texas and Florida. Most of these businesses do not know that they have this opportunity. Claims Strategies Group has been working with businesses throughout the region to determine if they can benefit from this opportunity and have found that many businesses can benefit - and the benefit can be very significant.
The Settlement Agreement was approved by the United States District Court for Eastern Louisiana and became effective June 4, 2012. Many business owners have incorrectly believed that they would not qualify for damages under the settlement agreement either because their business was not located near the Gulf Coast or because they had no known impact from the spill. This assumption is wrong.
To be eligible for the settlement, a business must be located anywhere in Alabama, Mississippi or Louisiana, or in certain counties in Texas and Florida. Generally, the business must show a "V" revenue pattern that shows a dip in revenue during May to December 2010 and an increase in revenue during 2011. The cause of the 2010 revenue dip does not have to be directly related to the BP oil spill.
The process used to determine the "V" revenue pattern is flexible. Many businesses that do not seemingly have this revenue pattern will nevertheless be able to meet the test in the Settlement Agreement. There are also provisions for businesses that do not meet the "V" revenue pattern test, but that lost clients or contracts around the time of the spill. Furthermore, a business may qualify for a settlement if their business failed or entered bankruptcy during the spill.
The concept of this settlement is somewhat similar to the GO Zone depreciation deductions many businesses took after Hurricane Katrina. Many businesses with no known hurricane related property damage and with only indirect damage to their businesses benefitted from those deductions.
BP Settlement Claims Services
CSG will review and analyze monthly revenue information provided by the client to determine whether client revenue patterns meet any of the multiple revenue-based causation tests. If a potential claim is identified by the causation testing, we will proceed to the next phase.
Economic Loss Calculation
CSG will review and analyze additional detailed financial information provided by the client to determine the:
- Classification of client expenses into settlement-standard fixed and variable expense Categories
- Allocation of payroll expenses into fixed and variable expense categories according to settlement standards
- Selection of the Compensation Period and Benchmark Period that will produce an optimal settlement
- Claimant Specific Factor, which is used to adjust the client's revenue to capture the impact of pre-Deepwater Horizon Spill trends in the client's revenue performance
- Variable Profit and Variable Margin
Once we calculate the maximum economic loss amount, CSG will prepare and file the claim.
Claim Preparation and Filing
- CSG will guide the process of gathering and organizing additional financial and non-financial documents required to file the claim
- CSG will file the claim with the third-party claims processor
- CSG will act as an interface between the third-party claims processor and the client, in the event that there are questions or additional documentation is needed
- CSG will provide further review of the claim in the event of a potential appeal
For more information on determining if your business is eligible to file a claim, please contact us now.