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BP Business Economic Loss Claim Appeal 2016-1210:Claimant Fails Proof of Spill-Related Causation Test

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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 appeals the denial of its BEL Claim. The Claim was denied on the grounds that it failed causation.
Claimant’s revenue in 2011 was greater than its 2010 revenue. Hence, Claimant failed the V-Shaped Revenue Pattern Test, the Modified V-Shaped Revenue Test, and the Decline-Only Revenue Pattern Test.
Claimant argues that it still lost revenue in 2011 because many of its members either failed to renew their gym memberships in 2011, or stopped making their month payments on their existing memberships. Even though Claimant’s revenue was greater in 2011, it could still pass causation under the Proof of Spill-Related Reservation Cancellations Test, set forth in Exhibit 4B, Subpart (D). Under this test, a claimant must provide “contemporaneous written evidence of the cancellation of a contract as the direct result of the spill that claimant was not able to replace. In the absence of contemporaneous written evidence, the claimant must present an affidavit from a third party affirming that the cancellation was spill-related.” (emphasis added)
This Panel has reviewed all of the documentation submitted to the Program and submitted on appeal. Although the documentation may show an increase in dropped memberships and/or delinquent accounts, this documentation does not rise to the level of proof required under the above test.
In light of the above, the denial of this Claim is affirmed.

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