CLAIM SUMMARY / DETERMINATION FORM

Claim Number N10036-1429

Claimant Eduardo Balles

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $15,000.00

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 19 September 2011, Eduardo Balles (Claimant) presented an optional Oil Spill Liability Trust 

Fund (OSLTF) claim form seeking $15,000.00 for loss of profits and impairment of earnings 

capacity to the National Pollution Funds Center (NPFC) alleging damages resulting from the 

Deepwater Horizon oil spill. 

The Claimant worked for Royal Hospitality Services LLC from November 2009 through 10 May 

2010.1

 The Claimant was rehired in December of 2010 by Royal Hospitality Services LLC.2

Royal Hospitality Services is a staffing company that provided their client, Beau Rivage Resort 

and Casino located in Biloxi, Mississippi, with the Claimant’s services as a house keeper.3

 The 

Claimant alleged that he lost his job due to a reduction in force (RIF) as a result of the 

Deepwater Horizon oil spill.4

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 Employment letter from Royal Hospitality Services LLC dated 01 July 2011.

2 Employment letter from Royal Hospitality Services LLC dated 01 July 2011. 3 Telephone conversation between NPFC staff and HR of Royal American Hospitality 21 September 2011. 

4 The Claimant’s letter to the NPFC explaining his claim dated 24 August 2011. 

 
(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 his claim, Claimant submitted:

1) Sum certain letter dated 19 September 2011;

2) GCCF determination letter on Interim payment/Final payment claim dated 30 March 

2011;

3) The Claimant’s letter to the NPFC explaining his claim dated 24 August 2011;

4) Employment letter from Royal Hospitality Services LLC dated 01 July 2011;

5) 2010 W-2 from Royal Hospitality Services LLC;

6) 2009 W-2 from Royal Hospitality Services LLC;

7) Payroll summary from Royal Hospitality Services LLC for 12 January 2011 through 10 

August 2011;

8) Payroll summary from Royal Hospitality Services LLC for 01 January 2010 through 31 

December 2010.

Claimant seeks lost profits and impairment of earnings capacity in the amount of $15,000.00.
On 23 September 2011, NPFC sent a letter to the Claimant requesting additional information in 

order to further evaluate the claim. The Claimant did not respond to the request. The letter was 

sent Certified Mail Return Receipt Requested. The USPS Tracking site showed the letter was 

delivered 03 October 2011.5

Prior to presenting his claim to the NPFC, Claimant filed an Emergency Advance Payment claim 

(EAP) with the GCCF on 14 November 2010 in the amount of $5,000.00.6

 He was assigned 

Claimant ID #3394501and claim #465414. This claim was denied on 10 December 2010.7

Additionally, the Claimant filed two Interim claims with the GCCF, Interim claims (ICQ12011) 

Claim 1 with GCCF #9126049 and Interim claim 2 (ICQ32011) with Claim #9418347; claim 

ICQ12011 was filed on 03 January 2011 for $10,000.00 and claim ICQ32011was filed on 16 

July 2011 for $15,000.00. Interim Claim ICQ12011 was denied on 29 March 2011 and claim 

ICQ32011 was denied on 25 July 2011.8

 

Based upon the evidence provided by the Claimant, it appears that the subject matter for each of 

the GCCF claims is the same as the subject matter of his claim before the NPFC, i.e., that the 

Claimant lost earnings as a result of the Deepwater Horizon oil spill. The NPFC deems each of 

Claimant’s three denied GCCF claims to be properly presented to the responsible party and 

properly presented to the NPFC. Accordingly, this Claim Summary determination for NPFC 

Claim N10036-1429 considers and addresses the earnings claimed in all of the three claims 

presented to the responsible party, specifically; GCCF Claim #’s 465414 (EAP), 9126049 

(ICQ12011), and 9418347 (ICQ32011).

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 or destruction or loss of real or personal property or 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 the claim. 

The NPFC considered all the documentation submitted by the Claimant. 

After an initial review of the claim, the NPFC sent the Claimant a letter requesting additional 

information in order to further evaluate the claim.9

 The letter requested, among other things, a 

statement from the Claimant’s employer, Beau Rivage Resort and Casino, explaining how the 

decision to release the Claimant resulted from the Deepwater Horizon oil spill. To date, the 

Claimant has not responded to the request.10 The NPFC therefore proceeded to evaluate the 

claim with the documentation presented by the Claimant. 

The Claimant alleged $15,000.00 in damages as a result of the oil spill.11 The NPFC requested 

he provide tax returns for 2008 through 2010, his accompanying 1099s and or W-2 forms, and

explain whether he mitigated his alleged loss with other employment in 2010.12 As of the date of 

this letter, the Claimant has failed to respond to the NPFC certified letter requesting such 

5 USPS tracking 7011 1150 0000 4636 2564.

6 Report from the GCCF dated 06 October 2011. 7 GCCF Denial Letter dated 10 December 2010.

8 GCCF Denial Letter dated 25 July 2011.

9 The letter was sent on 23 September 2011. 10 The letter was delivered to the Claimant’s address on record on 03 October 2011. 11 Sum certain letter dated 19 September 2011. 12 NPFC certified letter requesting additional information dated 23 September 2011. 

 
additional information. 13 The Claimant submitted only his W-2 forms for 2009 and 2010 from 

Royal Hospitality Services LLC.14 In 2009, the Claimant started working in November and 

made $208.00. In 2010, for the months of March through May and December, he made 

$4,338.93 which does not support a loss of $15,000.00.15 Accordingly, the Claimant has not 

established his sum certain as presented to the NPFC. 

The Claimant alleged he lost his job as a result of the oil spill.16 NPFC staff contacted Royal 

Hospitality Services LLC on 21 September 2011.17 The HR Department confirmed the 

Claimant’s employment and that he was staffed with Beau Rivage Resort and Casino in Biloxi 

Mississippi as a housekeeper until 15 May 2010 due to reduction in force (RIF).

18 The HR staff 

could not verify the causation any further.19 The NPFC requested via certified letter that the 

Claimant provide a letter from his employer and/or Beau Rivage stating the causation for his loss 

of employment. 20 As of the date of this letter, the Claimant has not provided the requested 

documentation.21 As such, the Claimant has not established by a preponderance of the evidence 

that his alleged loss of earnings was due to the oil spill.

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

has an alleged loss in the amount claimed, and (2) that his 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: 10/29/11

Supervisor’s Actions: Denial approved

Supervisor’s Comments:

13 USPS 7011 1150 0000 4636 2564. 14 2009 and 2010 W-2 forms from Royal Hospitality Services LLC. 15 2009 and 2010 W-2 forms from Royal Hospitality Services LLC. 16 The Claimant’s letter to the NPFC explaining his claim dated 24 August 2011. 17 Phone conversation between NPFC staff and HR of Royal Hospitality Services LLC on 21 September 2011. 18 Phone conversation between NPFC staff and HR of Royal Hospitality Services LLC on 21 September 2011. 19 Phone conversation between NPFC staff and HR of Royal Hospitality Services LLC on 21 September 2011. 20 NPFC certified letter requesting additional information dated 23 September 2011. 21 USPS 7011 1150 0000 4636 2564.