CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1410

Claimant Mr. George Panagos

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $5,000.00

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 

claims for certain individual and business claims on behalf of BP.

CLAIM AND CLAIMANT

On 14 September 2011, Mr. George Panagos (the Claimant) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF) requesting $5,000.00 in loss of profits and impairment of earnings 

capacity allegedly resulting from the Deepwater Horizon oil spill.1

At the time of the oil spill, the Claimant was a student who planned to return to Pensacola, 

Florida during the summer of 2010 to work at Geno’s Fresh Catch Seaside Restaurant in Orange 

Beach, Alabama.2 The Claimant alleged that he was “guaranteed this job in 2010, but because of 

the oil spill and loss of business, they had no ability to hire [the Claimant] for the summer 

season.”3

The Claimant seeks $5,000.00 from the OSLTF due to his inability to be hired for a position at 

Geno’s Fresh Catch Seaside Restaurant.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:

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

1 Optional OSLTF Claim Form, dated 1 September 2011. 2 Optional OSLTF Claim Form, dated 1 September 2011.

3 Optional OSLTF Claim Form, dated 1 September 2011

4 Optional OSLTF Claim Form, dated 1 September 2011.

 
(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 1 September 2011;

• Copy of GCCF Denial Letter on Emergency Advance Payment Claim, 6 December 2010.

Prior to presentment to the NPFC, the Claimant presented an Emergency Advance Payment 

claim (EAP) to the RP/GCCF. The Claimant was assigned ID 03355170 and the EAP claim was 

assigned Claim # 416489. The EAP claim was denied by the GCCF on 6 December 2010. 

On 14 September 2011, the Claimant filed this claim with the NPFC, seeking $5,000.00 in loss 

of profits and impairment of earnings capacity resulting from the Deepwater Horizon oil spill. 

The NPFC will adjudicate this claim in the amount of $5,000.00, to the extent that this amount 

has been first presented to and denied by the RP/GCCF. Any amount of damages now presented 

to the NPFC, which were not first presented to the RP/GCCF are denied.

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 suffered an actual financial loss, and (2) that the alleged loss was the 

result of the injury, destruction or loss of property or natural resources as a result of a discharge 

or substantial threat of a discharge of oil.

The Claimant alleged that he suffered a loss in income because he was not hired by Geno’s Fresh 

Catch Grill during the summer of 2010. However, failure to be hired at a job that the Claimant 

had not yet secured is not an actual loss, and is not compensable under OPA. OPA requires that 

the Claimant demonstrate that his earnings were reduced due to the discharge or substantial 

threat of discharge of oil.5 Furthermore, the Claimant must account for any income obtained 

from alternate employment during the period in which he is claiming a loss.6

 

The Claimant was not employed at Geno’s Fresh Catch Grill during the time of the oil spill, so 

he has not demonstrated that his income was reduced. Furthermore, the Claimant has not 

provided any documentation that would show what, if any, income he earned in alternate 

employment from May to September of 2010.

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

suffered a loss in the amount of $5,000.00, 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: 9/21/11

Supervisor’s Action: Denial approved

Supervisor’s Comments:

5 33 C.F.R. § 136.233.

6 33 C.F.R. § 136.235(b).