Economic and Property
Motley Rice helps people and businesses hurt by the spill file claims under the new court-supervised claims programs. Please contact Motley Rice lawyer John Baden or Kevin Dean by email or at 1.800.216.9170 if you would like to talk about your rights.
On Dec. 21, 2012, U.S. District Judge Barbier granted final approval of the Economic and Property Damages Class Action Settlement.
Qualifying people and businesses who were financially hurt or whose property was damaged by the oil spill will be paid for a range of losses according to frameworks specially [or individually] tailored to each type of claim.
The Economic and Property Damages Settlement resolves specified economic and property damage claims related to the Deepwater Horizon oil spill and generally covers claims involving the following:
- Business Economic Loss- People/businesses doing business or operating in the specified Gulf coast areas* or specified Gulf waters* between April 20, 2010, and April 16, 2012, that lost profits, income or earnings.
- Coastal Real Property Damage- Eligible coastal real property owners who owned their property between April 20, 2010, and Dec. 31, 2010, or those who leased eligible coastal real property for 60 days or longer between April 20, 2010, and Dec. 31, 2010, and executed the lease before April 20, 2010.
- Failed Business Economic Loss- Businesses that began operating before Nov. 1, 2008, and stopped operating, entered bankruptcy or liquidated assets between May 1, 2010, and Dec. 31, 2011.
- Individual Economic Loss- People who lost earnings from employment and worked as of April 20, 2010, in specified Gulf Coast areas* or specified Gulf waters*; accepted an offer to work as a seasonal employee between April 21, 2010, and Dec. 31, 2010, in the same or a similar seasonal position that was previously held; or accepted a first-time employment offer to begin work between April 21, 2010, and Dec. 31, 2010.
- Individual Periodic Vendor (IPV)- Person claiming economic loss between May 1, 2010, and Dec. 31, 2010, who regularly sold eligible legal food, souvenir, art, tourist-related, or water-related goods or services during 2009 and 2010.
- Festival Vendor Economic Loss- Person claiming economic loss between May 1, 2010, and Dec. 31, 2010, who regularly made festival sales prior to April 20, 2010, in specified areas at events such as street festivals, tournaments/major sporting events, outdoor art exhibitions or carnivals.
- Loss of Subsistence Use- People who fish or hunt to harvest, catch, barter, consume, or trade Gulf of Mexico natural resources to sustain their basic or family dietary, economic security, shelter, tools or clothing needs and suffered loss between April 20, 2010, and Dec. 31, 2011.
- Physical Damage to Vessels- Owners of eligible vessel (s) between April 20, 2010, and Dec. 31, 2011, who suffered physical damage to a vessel as a result of the oil spill or certain cleanup efforts.
- Real Property Sales- Residential property owners as of April 20, 2010, who sold the property at a lower price because of the oil spill between April 21, 2010, and Dec. 31, 2010.
- Seafood Compensation Program- Separate $2.3 billion fund to compensate eligible economic damage claims of oyster leaseholders, seafood vessel owners, commercial fishermen and seafood crew.
- Start-up Business Economic Loss- Businesses that began operating on or after Nov. 1, 2008, and stopped operating, entered bankruptcy or liquidated assets between May 1, 2010, and Dec. 31, 2011.
- Vessels of Opportunity Charter Payment- Those who registered to participate in BP's Vessels of Opportunity (VoO) program and executed a VoO Master Vessel Charter Agreement.
- Wetlands Real Property Damage- Coastal wetlands real property owners who owned their property between April 20, 2010 and April 16, 2012.
Read the NOTICE issued by the U.S. District Court for the Eastern District of Louisiana explaining in detail the Economic and Property Damages Settlement and Settlement program.
* View the specified Gulf Coast areas (Zones A-D) and waters at the court-supervised website.
How Claims are Calculated
Although all claimants will have the opportunity to prove that the oil spill caused their losses, not all claimants will be required to prove this. In certain areas, it is presumed that the oil spill caused the losses suffered by people and businesses in those areas. Claimants that do not fall into this category have the opportunity to prove that the oil spill caused their losses. The intent is that the settlement allows all eligible claimants to recover from BP.
Past earnings are included in the formula used to calculate how much BP must pay each eligible claimant. Claimants can select specific months to be used to measure lost profits or income, and this formula depends upon a number of different factors. Generally, a Risk Transfer Premium (RTP) or "multiplier" will be used to account for future ecological and economic uncertainty on eligible claims. What RTP is used depends on the location and nature of the claimant's loss.
If you were a cleanup worker or lived in certain areas along the Gulf coast following the Deepwater Horizon oil spill, you may also be eligible for compensation under the Medical Benefits Settlement.
How the Settlement Program Works
The claims program covering economic loss and property damage replaces the GCCF and is formally called the Deepwater Horizon Court-Supervised Settlement Program (Settlement Program). It is court-supervised to ensure fair, impartial and consistent processing and payment. Settlement formulas used to calculate compensation are transparent and will be applied with consistency. All outstanding GCCF claims and non-expired offers are protected. In addition, all pending claim submissions, papers and forms were transferred to the new Settlement Program.
This Settlement Program began operating on June 4, 2012, and qualified claims will be paid immediately as they are approved.
The administration of the new Settlement Program is centrally located in New Orleans and the surrounding Gulf regions to allow for greater efficiency and fairness. The court-appointed Louisiana-based lawyer Patrick Juneau as Claims Administrator for the Settlement Program.
The Settlement Program generally takes into consideration potential future losses and other risks not included in the GCCF.
Contact an Oil Spill Lawyer
If you have been hurt economically, had property damage, or suffered a physical injury as a result of the Deepwater Horizon oil spill and would like to consult with a lawyer regarding your rights, please contact Motley Rice lawyer John Baden or Kevin Dean by email or call 1.800.216.9170 .