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BP Business Economic Loss Claim Appeal 2016-2278: Lawn Service Company’s Income from Government Contract Not 50% of Income

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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, located in New Iberia, Louisiana, provides grass cutting, land clearing, boundary marking and other similar services. On it’s BEL claim, the Settlement Program (SP) awarded the Claimant the sum of $332,208.06 (pre – 1.25 RTP). BP appeals.

On appeal, BP asserts:
1) Claimant may be excluded as a defense contractor or subcontractor; and,
2) The SP erred in its treatment of “Other Income” as revenue.
The Defense Contractor Issue
The Claimant, from the inception of this claim, provided financial information to the SP which clearly indicates that the was one of Claimant’s contract customers. The revenue generated by work for the Corps of Engineers is in the record. The SP staff had this information and BP has access to the information. The SP staff was
apparently satisfied that the work for the Corps of Engineers did not amount to 50% of Claimant’s 2010 revenue. BP has access to the same information and does not demonstrate where the Corps of Engineer revenue totals 50% of total revenue. This issue on appeal is without merit.
The “Other Income” Revenue Issue
The record reflects that the SP staff inquired about the nature of the “Other Income”. Claimant was asked by the SP staff about the source of this income and what the account reflected. Per the Notes in the Accountant Compensation Calculation Schedule, the SP’s Staff properly treated this item.
For the reasons set forth above, BP’s appeal is denied and Claimant’s Final Proposal is the proper result.

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