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BP Business Economic Loss Claim Appeal 2016-1894: Claimant Qualifies As Service Business Under Section 1.2.2 of the Settlement Agreement

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.

This claimant provides housekeeping management services at three medical centers in the Gulf Coast Areas. It filed Business Economic Loss claims on behalf of each, each of which were denied, upon a finding by the Claims Administrator that:
“You submitted a claim for a component of your business that is not a
Facility as defined in Exhibit 5 of the Settlement Agreement and as the
Settlement Program defines that term. The Settlement Program defines a
Facility of a Business Entity as: (1) a separate and distinct physical
structure, such as a building or other premises; (2) owned, leased or
operated by the Business Entity; (3) at which the Business Entity performs
and/or manages its operations. The component of the business must satisfy
all three elements of this definition to constitute a Facility.”
In an exhaustive and lengthy opinion containing excellent analyses on CLASS MEMBERSHIP PURSUANT TO SECTION 1.2.1 and CLASS MEMBERSHIP PURSUANT TO SECTION 1.2.2 , omitted here due to space considerations (but highly recommended reading), the Panel reached the following conclusion:
This Panel finds that Claimant qualifies for Class Membership pursuant to Section 1.2.2 of
the Settlement Agreement. Additionally, this Panel finds that the location in the instant appeal was
a Facility during the relevant time period. For those reasons, the denial of this Claim is overturned
and this matter is remanded to the Claims Administrator for further processing in keeping with this
[Note: The Settlement Program made reference to Policy 482 in its Summary of Review, stating
that if Claimant qualified under Section 1.2.2, Claimant would be assigned Zone D. However, that
statement was made on the assumption that Claimant did not have a Facility in the Gulf Coast
Areas. As noted above, this Panel has found that the location in the instant appeal is a Facility
located in the Gulf Coast Areas. Consequently, Policy 482 does not apply.]

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