Tampa, Florida


Email Tom Young Tom Young on LinkedIn Tom Young on Twitter Tom Young on Facebook Tom Young on Avvo
Tom Young
Tom Young
Attorney • (813) 251-9706

BP Business Economic Loss Claim Appeal 2015-721: Policy 465, Defense Contractor Exclusion


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 Appeals Process. Links may have been added to assist the reader. The original decision may be found here.

Claimant is engaged in heavy hauling, is located in Birmingham, Alabama, and received an award of $52,824.06, pre Risk Settlement Premium from the Settlement Program.

BP alleges that the Settlement Program failed to determine whether the Claimant is an Excluded Defense Contractor. BP cites to an email from Claimant’s accountant which described Claimant’s primary source of income is “its freight brokerage business is from hauling military equipment from the government to ports where it is shipped overseas from there.” BP also points out that Claimant’s website states that it specializes in work with the “Government and Military.”

Section of the Settlement Agreement provides that claims may not be filed by “Defense Contractors/Subcontractors, including firms that derive in excess of at least 50% of their annual revenue from contracts with the United States Department of Defense and Individuals whose employer qualifies as a Defense Contractor.”

Policy 465 provides that “Claims from businesses and their employees for which at least 50% of the annual revenue is generated from contracts with the United States Department of Defense will be considered defense contractors.” “Annual revenue” is defined as “The revenue reported on the claimant’s 2010 federal tax return during that claimant’s fiscal year.” BP’s assertions are based on an email from Claimant’s accountant regarding revenue in 2011, not 2010 which is the target year of the analysis. Even if Claimant is a Potentially Excluded Defense Contractor, the Claims Administrator is directed to “compile publicly available information available on www.usaspending.org, on all DOD Contracts awarded to Claimant in 2010. The website shows none. Furthermore, Claimant’s president has also signed an affidavit that confirms that no contracts from DOD were awarded in 2010. Therefore, the Defense Contractor Exclusion does not apply.

BP’s appeal is denied.

appeal 721

The preceding was the appeal panel decision in Appeal 2015-721. Learn more about the BP Deepwater Horizon Settlement Business Economic Loss (BEL) Claim Appeal Process.

Leave a Comment

Have an opinion? Please leave a comment using the box below.

For information on acceptable commenting practices, please visit Lifehacker's guide to weblog comments. Comments containing spam or profanity will be filtered or deleted.