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BP Business Economic Loss Claim Appeal 2015-1208: Pro se claimant fails to defend BP appeal re revenue recognition


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.

 BP appeals a BEL award of $865,951.00 (pre-RTP) to a Galveston, Texas residential nursing facility on a single preserved basis. Therein, it argues that the Program vendors failed to look into the specific revenue item “Other Revenue-Miscellaneous”. Specifically, it asserts that Claimant (which is unrepresented in this appeal) recorded significant revenues in the aforesaid category during each of the months of January through November, 2009, but then recorded $0 in December of that year, and $0 for the entire 2010 calendar year. BP argues that this is a non-recurring revenue item impacted by Policy 373 and that in actuality, were this item excluded from calculations under said Policy, Claimant would have shown higher income in 2010 than in the benchmark year of 2009, disqualifying it from an award under Exhibit 4B.

Because of the relatively large size of this award and the fact that the record contained no responsive memorandum from Claimant, this Panelist chose to grant Claimant an additional period of time in which to respond to BP’s contentions. Surprisingly, no such response was filed, which is a sad testament to the hazards of self-representation in these matters.

As such, this panelist is compelled to remand this matter to the Administrator to re-examine the financials, specifically the “Other Revenue-Miscellaneous” item, to determine whether in fact Claimant is entitled to an award under Exhibit 4B, and if so, its amount.

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