11192017Headline:

Tampa, Florida

HomeFloridaTampa

Email Tom Young Tom Young on LinkedIn Tom Young on Twitter Tom Young on Facebook Tom Young on Avvo
Tom Young
Tom Young
Attorney • (813) 251-9706

BP Settlement Claim Payment Statistics – West Central Florida

2 comments

12,477 Hillsborough, Pinellas, Pasco, Hernando and Citrus County businesses and individuals have filed economic loss claims with the BP Deepwater Horizon Court Supervised Settlement Program (CSSP). The CSSP began receiving claims on June 4, 2012 and will likely continue at least into the Spring of 2015. As of the date of publishing listed above, the precise claim filing deadline has yet to be set. For this reason, all businesses in West Central Florida that experienced an economic loss as a result of the spill are encouraged to undergo an eligibility evaluation as soon as possible.

Of the 12,477 Suncoast area claims currently filed, 1,035 have been paid to-date for a total of $127,370,000, resulting in an average claim value of $119,000. Assuming all 12,477 claims are paid, and no additional claims are filed, area businesses will receive $1.7 billion over the next two years.

Suncoast BP Claim Payment Statistics

Click for higher resolution. Official BP Deepwater Horizon Court Supervised Settlement Program data. Map courtesy of The Sarasota-Herald Tribune.

According to the latest U.S. Census figures, there are approximately 300,000 business and non-profit entities in these five West Central Florida counties. Through our experience in evaluating eligibility for over 2,000 companies and non-profits, we estimate that one-fourth to one-third of all Hillsborough, Pasco, Pinellas, Hernando and Citrus County businesses suffered a measurable economic loss as a result of the Deepwater Horizon Disaster and are eligible for compensation under this program. Conservatively, that suggests that approximately 75,000 regional entities should file claims, yet to-date only 12,477 have done so, or less than 20%.

Were all eligible area businesses to file claims, based on the average claim value for the West Central Florida counties of $119,000, we would expect an infusion of $8.9 billion into the region over the next two years. As such, this is an economic development matter of great importance. Our elected officials, Chambers of Commerce, trade groups, professional associations and economic development organizations should actively encourage eligible claimants to participate.

Job losses associated with BP Deepwater Horizon Oil Spill.

The Florida Gulf Coast, particularly the area south of the Panhandle, endured the greatest job losses. This includes large metropolitan areas like Tampa / St. Petersburg, Sarasota / Bradenton, Ft. Myers / Naples as well as the tourism dependent Florida Keys. Chart Courtesy of The Kennedy School of Government at Harvard University.

Lest there remain doubts of the severity of the impact BP’s spill had on our economy, one need look no further than a study released by Harvard University in August 2014. As depicted in the chart above, the West Coast of Florida, particularly the area south of the Panhandle, experienced the greatest job losses. Over 50,000 jobs were eliminated and 10,000 companies closed their doors for good. The resulting economic malaise trickled down into nearly every industry as confirmed by this December 2013 report from economist Timothy Ryan, Ph.D.

This should come as no surprise to students of the tourism-centric Florida economy. As a hypothetical, imagine the European visitor on vacation. This person may typically fly into Orlando and spend a few days at Disney World before driving West on I-4, stopping for a bite at Hooters off Exit 32 before making her way through Tampa where she stops for gas at a BP station on her way to a five day Indian Shores vacation. In the Summer of 2010, she instead flew to Anaheim, California where she spent three days at Disneyland before taking the 405 to Newport Beach. Worse, rather than returning in 2011, this tourist now chooses California for her holiday, fearing the Florida beaches remain oiled.

When considering these dynamics, all businesses in eligible BP compensation zones (yellow, purple, red and gray areas) have a duty to determine their eligibility. They owe it to their shareholders, employees and community. BP, seeking to avoid punitive damages, agreed, and is contractually obligated to pay, all businesses that experienced a loss “relating in any way to, directly or indirectly, the Deepwater Horizon Incident.” See Settlement Agreement, Section 38.57.

That said, determining loss as a result of the spill is not as easy as you may think and it is not a job for the layperson. Don’t just assume you were not affected because you don’t run the local waterfront motel. In fact, some of the areas hardest hit by the economic fallout suffered little if any physical oiling.

For these reasons, I strongly encourage our local, regional and state leaders to educate themselves so that they can inform their constituents the truth about the BP Settlement and what it means for our area.

2 Comments

Have an opinion about this post? Please consider leaving a comment or subscribing to the feed to have future articles delivered to your feed reader.

  1. up arrow

    […] Southwest Florida, West Central Florida and Panhandle businesses and individuals have filed economic loss claims with the BP Deepwater […]

  2. up arrow

    […] View Original: BP Settlement Claim Payment Statistics – West Central Florida […]

Leave a Comment

Have an opinion? Please leave a comment using the box below.

For information on acceptable commenting practices, please visit Lifehacker's guide to weblog comments. Comments containing spam or profanity will be filtered or deleted.