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BP Business Economic Loss Claim Appeal 2016-1791: Zone C Car Dealer Start-Up Claim Fails Upturn Revenue Pattern Plus and Customer Mix Tests

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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 is a retail vehicle trader (used car dealer) located in Pinellas Park, Florida, Zone C. It applied for an award as a start-up business but was denied by the Administrator for failure to pass causation.
As a Zone C car dealership the Claimant must pass the Upturn Revenue Pattern Plus test and the Customer Mix test to establish causation under Exhibit 7. The Customer Mix test requires the Claimant to prove a total of 10% increase in total revenue generated by its customers in Zones A-C over the same periods of 5/11 to 4/12 compared to 5/10 to 4/11.
The data submitted by the Claimant fails the test because it included inter-company transactions including maintenance/repair revenues on inventory cars. Policy 362 v 2 requires exclusion of these amounts.
When removed the Claimant fails causation. Claimant submitted a letter from its accountants explaining all car dealers account for these revenues in the same fashion. No matter, they must be excluded under the Settlement Agreement. The denial is affirmed

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