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BP Business Economic Loss Claim Appeal 2015-1675: Expenses sufficient to indicate start-up


The following is an Appeal Panel Decision issued pursuant to Section 6 of the BP Deepwater Horizon Economic & Property Damages Settlement Agreement and the Rules Governing the BP Appeals Process. Links may have been added to assist the reader. The original decision may be found here, as well as a glossary of BP Settlement terms.

 This appeal proves once again how close the calls are in the Start-Up Business Economic Loss framework. The Claimant operates two retail gift shops in the new XXXXX airport which opened on May 22, 2010. Claimant, under an INC entity of the same name, operated a gift shop in the former airport, XXXXX. That shop had sales revenue in March-April 2010, which, while not determinative to this LLC entity, at least shows the owner of both had the prior experience to operate the two shops at issue here. The fact a lease was executed for the space at the new airport on March 11, 2010 to begin on May 1, 2010 also shows Claimant’s intent to open these stores and finally, the incurring of expenses related to shelving and fixtures which were ordered before April 20, 2010 satisfy the Policy 362 requirements of the totality of the circumstances indicating the actual start-up of the business. Revenues are not required in these cases, just substantial expense be incurred to show intent to actually start the business. Under the Claimant friendly approach to these cases required by the Settlement Agreement, the Administrator should have calculated an award and is hereby directed to do so

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