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BP Business Economic Loss Claim Appeal 2016-1200: Hotel Management Company Qualifies as A “Facility” Under Exh. 5 of Settlement Agreement

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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.

Claimant, a hotel management company headquartered in Delray Beach, Florida, appeals the denial of its BEL claim filed on behalf of a property in Sunset Key, Florida. The Settlement Program(SP) predicated its denial notice on a finding that claimant was not a “Facility” within the definition of Exhibit 5 of the Settlement Agreement.
At the behest of BP a Summary of Review was requested “because the record does not contain a detailed description of the Settlement Program’s factual analysis and reasoning.” A Summary of Review was received wherein the SP affirmed its earlier determination: “Because does not own, lease, or operate these hotels, the Settlement Program denied each claim for not being Facilities under policy 467.”
Claimant contends documentary submissions in the record, viz., management agreements, confirm that claimant indeed managed and operated the premises the subject of this claim. A review of the record supports claimant’s contentions. These documents reveal claimant was vested with the authority to manage and operate the subject premises on a daily basis(apart from the owners who relinquished such duties to claimant) from which operations claimant was paid a percentage of annual gross revenues for its labors.
This affirmative showing in the record persuades this panelist claimant has satisfied the definition and requirements of the Settlement Agreement and policy 467 to qualify as a “Facility”and eligible for compensation. Accordingly,the denial of this claim is vacated and set aside and remanded to the Claims Administrator for processing and evaluation under the BEL framework.

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