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BP Claim Discretionary Review of Appeal 2016-300: Claimant entity not operating on April 20, 2010


The following is a Discretionary Review Order issued by Judge Barbier pursuant to the Rules Governing Discretionary Court Review of Appeal Determinations. Judge Barbier’s rulings are binding on the Claims Administrator and the Appeal Panelists. 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.

IT IS ORDERED that the request for discretionary review is hereby GRANTED. The Claims Administrator denied this claim on grounds that the claimant entity was not in business nor operating as of the date of the Oil Spill (April 20, 2010). The Appeal Panel reversed on grounds that the claimant entity was merely the continuation of two entities that had been in operation long before the Oil Spill. The flaw in the Appeal Panel’s decision lies in the fact that the June 2010 transaction at issue was one where the claimant entity purchased certain assets, not where the predecessor entities themselves were purchased. The Claims Administrator was correct in determining that the claimant entity was not operating as of the date of the Oil Spill as required by Claims Administrator Policy 362 v. 2. The decision of the Appeal Panel is REVERSED, and the denial of the Claims Administrator is REINSTATED.

[Editor’s Note: This Order reverses the holding of the appeal panelist in Appeal 2016-300]

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