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BP Business Economic Loss Claim Appeal 2016-1928: Start-Up Claimant Failed to Provide Customer Mix Data

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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 retail wine and beer store in Naples, Florida, appeals the denial of its Start-Up BEL claim for failure to satisfy the causation requirements of Exhibit 7 of the Settlement Agreement. Claimant asserts it satisfied the Upturn Revenue Pattern Test because it showed an aggregate increase of 15% or more in total revenues over a
period of three consecutive months between May 2011 to April 2012 compared to the same months from May
2010 to April 2011.
BP counters that Exhibit 7 has another prong that must be satisfied as well,viz., the Customer Mix requirement that necessitates a showing of an aggregate 10% increase in the share of total revenues generated by customers in zone A-C. A review of the record discloses that the Settlement Program(SP) informed claimant of the need for complete customer mix data as early as May 5, 2015 and continued outreach to claimant to process the claim consistent with the requirements of Exhibit 7.(The denial notice issued on March 7,2016,)
The Calculation Notes, paragraph 18, styled “Customer Mix”,referenced claimant’s submissions and concluded claimant failed to meet its burden: “The Claimant submitted Customer Mix data for May 2010-April 2011 and May 2011-April 2012.The information provided shows the Claimant did not demonstrate the proof of an aggregate of 10% increase in the share of total revenue generated by customers in zone A-C. The zone A-C and zone D totals for 2010-2012 can be found in the Summary Causation Results:   “Claimant has not provided any countervailing argument or documentation to overturn the decision of the SP which contains a reasonable basis in the record to support it. ” Accordingly, the decision of the Claims Administrator is affirmed and the appeal of claimant is denied.

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