CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1457

Claimant Mr. Edward Charles III

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $16,398.73

FACTS 

On or about 20 April 2010, the Mobile Offshore Drilling Unit Deepwater Horizon (Deepwater 

Horizon) exploded and sank in the Gulf of Mexico. As a result of the explosion and sinking, oil 

was discharged. The Coast Guard designated the source of the discharge and identified BP as a 

responsible party (RP). BP accepted the designation and advertised its OPA claims process. On 

23 August 2010, the Gulf Coast Claims Facility (GCCF) began accepting and adjudicating 

certain individual and business claims on behalf of BP.

CLAIM AND CLAIMANT

On 30 September 2011, Mr. Edward Charles III (the Claimant) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF) seeking $16,398.73 in loss of profits and impairment of earnings 

capacity resulting from the Deepwater Horizon oil spill.

1

At the time of the oil spill, the Claimant alleged to have been working at a small catering 

business in New Orleans, Louisiana.2

 The Claimant alleged that he was laid off on 22 April 

2010 because of the oil spill, as the oil spill caused the catering company to close due to “lack of 

seafood.”3 The Claimant has not sought alternate employment, or otherwise attempted to 

mitigate his losses since the loss of his position on 22 April 2010, because he “was waiting for a 

final payment from the GCCF.”4 The Claimant alleged that he earned $16.50/hour plus tips in 

his position as “lead cook” for a small catering company, and seeks loss of profits and earnings 

capacity damages in the amount of $16,398.73.5

 

APPLICABLE LAW 

Under the Oil Pollution Act of 1990 (OPA), at 33 U.S.C. § 2702(a), responsible parties are liable 

for removal costs and damages resulting from the discharge of oil into or upon the navigable 

waters or adjoining shorelines or the exclusive economic zone, as described in Section 2702(b) 

of OPA. 

The OSLTF which is administered by the NPFC, is available, pursuant to 33 U.S.C. § 2712(a)(4) 

and § 2713 and the OSLTF claims adjudication regulations at 33 C.F.R. Part 136, to pay claims 

for uncompensated damages. One type of damages available pursuant to 33 C.F.R. § 136.231 is 

a claim for loss of profits or impairment of earning capacity due to injury to or destruction of 

natural resources.

Under 33 C.F.R. § 136.233 a claimant must establish the following:

1 Optional OSLTF Claim Form, dated 21 September 2011. 2 Letter from Myrna Guity, undated.

3 Optional OSLTF Claim Form, dated 21 September 2011.

4 Optional OSLTF Claim Form, dated 21 September 2011.

5 Letter from Myrna Guity, undated.

 
(a) That real or personal property or natural resources have been injured, destroyed, or lost.

(b) That the claimant’s income was reduced as a consequence of injury to, destruction of, or 

loss of property or natural resources, and the amount of that reduction.

(c) The amount of the claimant’s profits or earnings in comparable periods and during the 

period when the claimed loss or impairment was suffered, as established by income tax 

returns, financial statements, and similar documents. In addition, comparative figures for 

profits or earnings for the same or similar activities outside of the area affected by the 

incident also must be established.

(d) Whether alternative employment or business was available and undertaken and, if so, the 

amount of income received. All income that a claimant received as a result of the 

incident must be clearly indicated and any saved overhead and other normal expenses not 

incurred as a result of the incident must be established. 

Under 33 C.F.R. § 136.105(a) and § 136.105(e)(6), the claimant bears the burden of providing to 

the NPFC, all evidence, information, and documentation deemed necessary by the Director, 

NPFC, to support the claim. 

Under 33 C.F.R. § 136.235, the amount of compensation allowable for a claim involving loss of 

profits or impairment of earning capacity is limited to the actual net reduction or loss of earnings 

or profits suffered. Calculations for net reductions or losses must clearly reflect adjustments 

for—

(a) All income resulting from the incident;

(b) All income from alternative employment or business undertaken;

(c) Potential income from alternative employment or business not undertake, but reasonably 

available;

(d) Any saved overhead or normal expenses not incurred as a result of the incident; and

(e) State, local, and Federal taxes.

DETERMINATION OF LOSS 

Claimant’s Submission to the OSLTF

To support this claim, the Claimant submitted the following documentation:

• Optional OSLTF Claim Form, dated 21 September 2011;

• Re-review Determination Letter on Interim Payment/Final Payment Claim, 22 August 

2011;

• Letter from Myrna Guity, stating that the Claimant lost his job on 22 April 2010;

• Letter from Myrna Guity, stating that the Claimant was laid off due to the oil spill;

• 2010 W-2 Wage and Tax Statement;

• ADP earnings statement, 2/2/2010;

• ADP earnings statement, 2/16/2010;

• ADP earnings statement, 3/2/2010;

• ADP earnings statement, 3/15/2010;

• ADP earnings statement, 3/30/2010;

• ADP earnings statement, 4/12/2010.
Prior to presentment to the NPFC, the Claimant presented a Third Quarter Interim Claim 

(ICQ32011) to the RP/GCCF. The Claimant was assigned Claimant ID 3533834 and the 

ICQ32011 claim was assigned Claim # 9426080.6

 This Claim was paid in the amount of 

$16,398.73 on 22 August 2011.7

The Claimant was also offered a final payment of $16,398.73 on 22 August 2011. The Claimant 

accepted this offer on 23 August 2011, but as of the date of this letter, has not executed the 

GCCF Release and Covenant Not to Sue in return for final payment.8 

On 30 September 2011, the Claimant submitted this claim to the NPFC, seeking $16,398.73 in 

loss of profits and impairment of earnings capacity damages. The Claimant alleged that he 

executed a release and covenant not to sue, but has not been paid his final settlement offer 

amount of $16,398.73, which he now seeks from the NPFC.9

NPFC Determination

Under 33 U.S.C. § 2702(b)(2)(E) and 33 C.F.R. Part 136, a claimant must prove that any loss of 

income was due to injury, destruction or loss of real or personal property or of a natural resource 

as a result of a discharge or substantial threat of a discharge of oil. Under 33 C.F.R. § 136.105(a) 

and § 136.105(e)(6), the claimant bears the burden of providing to the NPFC all evidence, 

information, and documentation deemed necessary by the Director, NPFC, to support this claim.

In order to prove a claim for loss of profits and impairment of earnings capacity, a claimant must 

demonstrate (1) that he sustained an actual financial loss, and (2) that the loss he sustained was 

due to the effects of the Deepwater Horizon oil spill.

The Claimant alleged that he was laid off from his position as a cook for a small catering 

company following the oil spill, as the oil spill“caused his job to close down due to lack of 

seafood.”10 However, the Claimant’s submission indicated that he was laid off on 22 April 2010, 

and the Claimant’s last pay stub was dated 12 April 2010.11 Because the oil spill occurred on 20 

April 2010, the Claimant’s allegation that the company was unable to obtain seafood, ultimately 

resulting in his layoff two days after the spill, is unfounded. 

Furthermore, the Claimant has provided two letters from a Ms. Myrna Guity in support of his 

submission. The NPFC attempted to contact Ms. Guity in order to verify the statements in the 

letters, but the number provided to the NPFC had been disconnected. 

Additionally, the NPFC reviewed the ADP Earning Statements provided by the Claimant, and 

note that they contain misspellings and appear to have been altered. Under 33 C.F.R. § 136.9, 

persons submitting false claims, or making false statements in connection with claims under this 

part, may be subject to prosecution under Federal law, including, but not limited to 18 U.S.C. § 

287 and 1001. In addition, persons submitting written documentation in support of claims under 

this part, which they know or should know, is false may be subject to civil penalty for each 

claim. 

6 GCCF Claimant Status, accessed on 4 October 2011. 7 Re-Review determination Letter on Interim Payment/Final Payment Claim, 22 August 2011. 8 GCCF Claimant Status, accessed on 4 October 2011.

9 Optional OSLTF Claim Form, dated 21 September 2011.

10 Optional OSLTF Claim Form, dated 21 September 2011. 11 Earning Statement, 4/12/2010.

 
This claim is denied because substantial portions of this claim appear to have been materially 

misrepresented in order to try to obtain funds from the Federal Government. Furthermore, the 

Claimant has not met his burden to demonstrate (1) that he sustained a financial loss in the 

amount of $16,398.73, and (2) that the losses the Claimant alleged to have incurred, were caused 

by the discharge or substantial threat of discharge of oil.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 10/7/11

Supervisor’s Action: Denial approved

Supervisor’s Comments: