CLAIM SUMMARY/DETERMINATION FORM

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 26 September 2011, Nicholas DeHart, (the Claimant) presented an Optional Oil Spill Liability Trust 

Fund (OSLTF) Claim Form to the National Pollution Funds Center (NPFC) seeking $6,000.00 in loss of 

profits and impairment of earnings capacity that allegedly resulted from the Deepwater Horizon oil spill.

At the time of the Deepwater Horizon oil spill, the Claimant was working at a Primerica insurance branch 

operating in the Houma, Louisiana region.1

 The Claimant asserts that due to the Deepwater Horizon oil 

spill, residents in the region suffered a loss of income and could no longer afford to utilize the Claimant’s 

business services.2 As a result, the Claimant experienced an increase of clients declining to renew their 

insurance policies as well as a charge back3 for each cancelled policy.4

 As a result of the lapsed policies 

and charge back fees, the Claimant asserts he suffered reduced income.5

The Claimant did not provide an explanation regarding the calculation of his sum certain of $6,000.00.

APPLICABLE LAW

The Oil Pollution Act of 1990 (OPA) provides that each responsible party for a vessel or facility from 

which oil is discharged into or upon the navigable waters or adjoining shorelines or exclusive economic 

zone is liable for removal costs and damages. 33 U.S.C. § 2702(a). Damages include the loss of profits 

or impairment of earning capacity due to the injury, destruction or loss of real property, personal property, 

or natural resources, which shall be recoverable by any claimant. 33 U.S.C. § 2702(b)(2)(E).

The OSLTF, which is administered by the NPFC, is available to pay claims for uncompensated damages 

pursuant to 33 U.S.C. § 2712(a)(4) and § 2713 and the OSLTF claims adjudication regulations at 33 

C.F.R. Part 136. With certain exceptions a claim must first be presented to the responsible party. 33 

1 Letter from the Claimant describing his claim. 2 Letter from the Claimant describing his claim. 3 A charge back is a fee assessed against the Claimant each time a client drops an insurance policy. 4 Letter from the Claimant describing his claim. 5 Letter from the Claimant describing his claim.

Claim Number N10036-1448

Claimant Nicholas Dehart 

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $6,000.00

 
U.S.C. § 2713(a). If the claim is either denied or not settled by any person by payment within 90 days 

after the date on which it was presented, the claimant may elect to commence an action in court or present 

the claim to the OSLTF. 33 U.S.C. § 2713(c).

Pursuant to the claims regulations, 33 C.F.R. § 136.233, a claimant must establish the following to prove 

loss of profits or impairment of earning capacity:

(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 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 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 undertaken, 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

The Claimant’s Submission to the OSLTF

In support of his claim, the Claimant presented the following documentation to the NPFC:

- Optional Oil Spill Liability Trust Fund (OSLTF) Claim Form, received 26 September 2011;

- Letter from the Claimant describing his claim;

- Document titled ‘Trend Track Report-Last Six Months-Base Shop from May 2010-October 2010;

- GCCF Denial Letter dated 30 November 2010;

- Combined Tax Statement for Forms 1098, 1099, 5498 for Tax Year 2009 from Primerica Life 

Insurance Co.;

- Combined Tax Statement for Forms 1098, 1099, 5498 for Tax Year 2009 from Primerica 

Financial Services Home Mortgages, Inc.;
- Combined Tax Statement for Forms 1098, 1099, 5498 for Year 2010 from Primerica Life 

Insurance Co.;

- Combined Tax Statement for Forms 1098, 1099, 5498 for Year 2010 from Primerica Financial

Services Home Mortgages, Inc..

Prior to presenting his claim to the NPFC, the Claimant filed an Emergency Advance Payment (EAP) Six 

Months Claim with the GCCF for loss of profits and impairment of earnings capacity on 10 November 

2010 in the amount of $12,000.00.6

 The Claimant was assigned Claimant ID # 3379520 and Claim ID # 

446714. The EAP Claim was denied on 30 November 2010.7

 Additionally, the Claimant filed a Full 

Review Final (FRF) Claim with the GCCF for loss of profits and impairment of earnings capacity on 02 

December 2010 in the amount of $36,000.00.8 The Claimant was assigned Claim ID # 3379520. The 

FRF was deemed deficient and denied on 04 June 2011.9

Based upon the evidence provided by the Claimant, it appears that the subject matter for the GCCF claims

is the same as the subject matter of his claim before the NPFC, i.e., that due to the Deepwater Horizon oil 

spill, the Claimant lost clients and suffered charge-back fees and by extension suffered reduced income 

from his insurance business. The NPFC deems the Claimant’s denied GCCF claims to be properly 

presented to the RP and properly presented to the NPFC. Accordingly, this Claim Summary 

Determination for NPFC Claim N10036-1448 considers and addresses the earnings claimed in the 

Claimant’s claim presented to the responsible party up to $6,000.00, specifically; GCCF Claim #’s 

3379520 (EAP) and 3379520 (FRF). 

NPFC Determination

The claim is denied. 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 documentation presented by the Claimant.

This claim is denied because the Claimant failed to prove that he suffered a loss due to the Deepwater 

Horizon oil spill. The Claimant asserted that, due to the Deepwater Horizon oil spill, residents could no 

longer afford to maintain their insurance policies with the Claimant’s business.10 As a result, the 

Claimant experienced a lapse in insurance policies as well as a rise in the number of charge-backs due to 

the policy cancellations.11 The Claimant, however, fails to provide sufficient evidence to connect his 

alleged loss to the Deepwater Horizon oil spill.

The Claimant did not provide documentation to prove that any existing clients cancelled previously 

purchased insurance plans due to the Deepwater Horizon oil spill. In regards to providing proof of policy 

cancellations due to the oil spill, the Claimant’s letter to the NPFC states that, “[The RP/GCCF] wanted 

me to provide them with specific client related data that would prove [my] loss occurred.12 I am 

prohibited from disclosing sensitive client information therefore [sic] could not satisfy this 

requirement.”13 However, any contractual restrictions between the Claimant and its clients has no effect 

on the evidentiary burden imposed by 33 C.F.R. § 136.105(a) and 136.105(e)(6) on claims against the 

OSLTF. Consequently, the Claimant has not shown that any alleged losses are due to the Deepwater 

6 Report from the GCCF dated 02 November 2011.

7 GCCF Denial Letter dated 30 November 2010. 8 Report from the GCCF dated 02 November 2010.

9 GCCF Deficiency Denial Letter dated 04 June 2011.

10 Letter from the Claimant describing his claim; 11 Letter from the Claimant describing his claim; 12 Letter from the Claimant describing his claim; 13 Letter from the Claimant describing his claim;

 
Horizon oil spill as opposed to other factors such as cost-cutting decisions by existing or potential clients 

to reduce expenses or generally declining market conditions.

This claim is denied because the Claimant failed to meet his burden to demonstrate 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 or that he suffered a loss in the amount claimed.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Review: 11/21/11

Supervisor’s Actions: Denial approved

Supervisor’s Comments: