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BP Business Economic Loss Claim Appeal 2015-1291: Loss of major customer not alternative causation


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 this award to Claimant. Appellant suggests that claimant was a [XXXXX] delivery contractor until late 2008 or early 2009 when [XXXXX], a European based company, phased out its U.S. delivery program. BP contends that claimant’s employees worked out of warehouses owned by [XXXXX], wore [XXXXX] uniforms and drove [XXXXX] marked trucks. According to BP, it was the termination of this relationship and not the spill which caused the losses which claimant now seeks to recover.

Despite these contentions, there is no question that Claimant survived as a going concern after the phase out by [XXXXX] and also no question that claimant satisfies the objective formula pursuant to the Settlement Agreement. BP’s stance amounts to nothing more than an alternative causation argument and this position has been soundly rejected by the Court in this case. Although claimant does not concede the point, this may be a case of a false positive. However, BP made its bargain and now must live with the effects of that bargain. There is no exception due to the loss of a major customer. If there was to be such an exception, it should have been carved out during the negotiations over the Settlement Agreement. It was not and, therefore, BP’s appeal in this case is dismissed.

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