CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1560

Claimant Mr. Reginald Gaines, Jr.

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $22,127.49

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 14 November 2011, Mr. Reginald Gaines, Jr. (the Claimant) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF) seeking $22,127.49 in loss of profits damages resulting from the 

Deepwater Horizon oil spill. 1

At the time of the oil spill, the Claimant alleged to have been working as an appliance salesman at 

Lowe’s in Jefferson, Louisiana. 2

 The Claimant alleged that “the BP oil spill had an economic 

domino effect on the Gulf Coast Region. As an appliance salesman, I too was affected.”3

 The 

Claimant further alleged that he moved to Seattle, Washington where he continued to work for 

Lowe’s “in a diminished position.” 4

 

The Claimant alleged that due to general economic effects of the Deepwater Horizon oil spill, the 

Claimant lost income in the amount of $22,127.49.00.

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 § 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:

(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.

1 Optional OSLTF Claim Form, dated 3 November 2011. 

2 Optional OSLTF Claim Form, dated 3 November 2011.

3 Optional OSLTF Claim Form, dated 3 November 2011. 4 Optional OSLTF Claim Form, dated 3 November 2011.

 
(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, 3 November 2011;

• IRS Tax Return Transcript, 2010;

• IRS Tax Return Transcript, 2009;

• IRS Tax Return Transcript, 2008;

• Lowe’s Home Centers, Inc., pay roll information, 4/02/2010;

• Lowe’s Home Centers, Inc., pay roll information, 12/11/2009;

• Lowe’s Home Centers, Inc., pay roll information, 12/12/2008;

• Map showing location of the Claimant’s employer;

• View Paycheck printouts, showing check date, 30 July 2010;

• Chase Bank Account statement, 5/07 – 6/01, no year indicated.

Prior to presentment to the NPFC, the Claimant presented a First Quarter Interim Claim (ICQ12011) 

as well as two Second Quarter Interim Claims (ICQ22011a) (ICQ22011b), and a Third Quarter 

Interim Claim (ICQ32011) to the RP/GCCF. The Claimant was assigned Claimant ID 3289649; 

ICQ12011 was assigned claim # 9145124; ICQ22011a was assigned claim # 9145124; ICQ22011b 

was assigned claim # 9384865; ICQ32011 was assigned claim # 9417481. The Interim claims 

sought damages incurred due to loss of subsistence use, loss of profits and earnings, and physical 

injury/death.5

 All Interim Claims were denied by the RP/GCCF.

5 GCCF Deficiency Letter on Interim Payment/Final Payment Claim, 21 July 2011, accessed via GCCF Claimant 

Status online, 22 November 2011.

 
The Claimant then filed a Full Review Final (FRF) claim with the RP/GCCF, which was assigned 

claim # 9055172 and was also denied.

On 14 November 2011, the Claimant presented this claim to the NPFC, seeking loss of profits 

damages in the amount of $22,127.49. The NPFC may adjudicate this claim to the extent that these 

damages were first presented to the RP/GCCF.6

 Any damages now before the NPFC, which were

not first presented to the RP/GCCF are denied for improper presentment.

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.

This claim is denied because the Claimant has failed to demonstrate that he sustained a loss of profits 

as a result of the Deepwater Horizon oil spill.

The Claimant alleged that effects of the oil spill prompted him to move to Seattle, Washington, 

where he continued to work for Lowe’s, but in a diminished position.7

 The Claimant’s bank account 

statement for the period 7 May 2010 to 1 June 2010, show charges being made in Seattle as early as 

10 May 2010.8

 Furthermore, the Claimant stated that he moved to Seattle around 26 April 2010.9 If 

the Claimant’s hours were down causing him to decide to move to Seattle as early as 26 April, the 

loss of hours could not have been due to the Deepwater Horizon oil spill, the effects of which were 

unknown until after the Claimant made his decision to move.10

Furthermore, the Claimant has not provided pay stubs to show that his hours were actually reduced 

following the oil spill. Should the Claimant choose to pursue this claim on reconsideration, the 

Claimant should present bi-weekly pay stubs, or bank account statements showing that the 

Claimant’s earnings remained consistent in the months of 2010 prior to the oil spill, and only 

dropped in the months following the oil spill. The Claimant should also present evidence to show 

exactly when he moved to Seattle and what his earnings were while working at Lowe’s in Seattle. 

This claim is denied because the Claimant failed to meet his burden to demonstrate (1) that he 

sustained a loss in the amount of $22,127.49, and (2) that the alleged loss is due to the injury, 

destruction or loss of property or natural resources as a result of a discharge or substantial threat of a 

discharge of oil.

Claim Supervisor: NPFC Claims Adjudication Division 

 

Date of Supervisor’s Review: 11/22/11

Supervisor’s Action: Denial approved

Supervisor’s Comments: 

6 33 C.F.R. § 136.103(a).

7 Optional OSLTF Claim Form, 3 November 2011.

8 Chase Bank Account statement, 5/07 – 6/01, no year indicated 9 PHONECON: Claimant and NPFC Staff, 22 November 2011.

10 Reuters, Timeline Gulf of Mexico Oil Spill, Available at http://www reuters.com/article/2010/06/03/oil-spillevents-idUSN0322326220100603, accessed on 22 November 2011.