CLAIM SUMMARY / DETERMINATION FORM

Claim Number : N10036-1695

Claimant : Sidney Lynn Thompson

Type of Claimant : Private (US)

Type of Claim : Loss of Profits and Earning Capacity

Amount Requested : $179,181.00

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 21 February 2010, Mr. Sidney Thompson (the Claimant) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF) seeking $29,181.00 in loss of profits damages, as well as 

$150,000.00 in real or personal property damage resulting from the Deepwater Horizon oil spill.1

At the time of the oil spill, the Claimant owned three properties in Gulf Shores, Alabama, and 

alleges to have sustained losses related to each property, including (1) depreciation in property 

value, and (2) loss of rental income. The Claimant first alleges that the oil spill caused 

depreciation in the Claimant’s property values on two properties: unit A203 in Beach Club, and 

unit 1408 in Admiral’s Quarters.2 The two properties were sold on 20 August 20103 and 17 

October 20114 for a total of $150,000.00 less than the pre-spill appraised values. The Claimant 

asserts that this reduction from appraised value to sales price is a loss attributable to the oil spill, 

which the Claimant categorized as real or personal property damage.5 The NPFC re-categorized 

this component of the claim as a claim for loss of profits and impairment of earning capacity 

damages in the amount of $150,000.00.

The Claimant also alleged to have sustained lost rental income on three properties located in 

Gulf Shores: (1) Admirals Quarter, unit 1408, (2) Beach Club, unit A203, and (3) Beach Colony, 

unit E1B in the amount of $29,181.00. 

Prior to presentment of this claim to the NPFC, the Claimant initially presented a claim to BP 

and was compensated by BP in the amount of $16,533.00.6

The Claimant subsequently presented claims to the GCCF for both himself, as an individual 

(GCCF Claimant ID 1133500), and for Thompson Enterprises LLC, that is owned/managed by 

Claimant and his wife, Paulette Thompson (GCCF Claimant ID 3054571). Thompson 

1 Optional OSLTF Claim Form signed on 9 February 2012. 

2 Claim Calculation document.

3 Settlement Statement, Admirals Quarters 1408, 

4 Settlement Statement, Beach Club A203.

5 Optional OSLTF Claim Form, signed on 9 February 2012.

6 GCCF Determination Letter on Interim Payment/Final Payment Claim, 26 August 2011.

 
Enterprises LLC accepted interim and final payments from the GCCF totaling $36,111.85.7

 

Furthermore, Claimant received payments as an individual from the GCCF totaling $32,433.00. 

In total Claimant and the LLC were compensated at least $68,544.85 by BP and the GCCF.8 

The Claimant was offered full and final settlement in the amount of $25,000.00, which the 

Claimant has not accepted as of the April 2, 2012, the date that the NPFC denied the initial 

claim. This finding was affirmed by the GCCF in a Re-Review Determination Letter dated 4 

February 2012.9

REQUEST FOR RECONSIDERATION:

The Claimant requested reconsideration which was received by the NPFC on April 19, 2012, 

2012 via regular mail. The Claimant provided a one-page letter requesting reconsideration. The 

Claimant provided no new information in support of the request for reconsideration but 

acknowledged that he and his wife executed a Release and Covenant Not to Sue for the $25,000 

final payment on June 17, 2011. He argued that the final payment and release was for Thompson 

Enterprises LLC and did not affect his or his spouse’s right to further payment as individuals. 

He maintains that since claims of individuals were tracked by the GCCF under different ID 

numbers the claims and rights were distinct.

NPFC Determination on Reconsideration

The Oil Pollution Act of 1990 provides that the payment of any claim or obligation by the Fund 

under this Act shall be subject to the United States Government acquiring by subrogation all 

rights of the Claimant or State to recover from the responsible party. 33 U.S.C. § 2712(f).

Under 33 CFR 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. The request for 

reconsideration must be in writing and include the factual or legal grounds for the relief 

requested, providing any additional support for the claim. 33 CFR 136.115(d). 

The NPFC performed a de novo review of the entire claim submission upon reconsideration. 

On reconsideration, Claimant seeks to be reimbursed for $179,181 in lost profits as an 

individual. He argues that he and his wife executed the Release and Covenant Not to Sue in the 

capacity as manager and co-manager of Thompson Enterprises LLC, not as individuals; 

therefore, he is entitled to reimbursement for his lost profits presented to the Fund. 

This argument fails for two reasons. First, the Release signed by Claimant and his wife as 

manager and co-manager of Thompson Enterprises, LLC specifically applies to, 

all of a claimant’s “affiliates,” including a claimant’s “spouse, heirs, beneficiaries, 

agents, estates, executors, administrators, personal representatives, subsidiaries, 

7 GCCF Release and Covenant Not To Sue (For Business Claimants), signed on 17 June 2011.

8 GCCF Determination Letter on Interim Payment/Final Payment Claim, 26 August 2011.

9 GCCF Claimant Status, accessed on 22 March 2012.

 
parents, affiliates, partners, limited partners, members, joint venturers, 

shareholders, et al. (emphasis added).10 

Because the Claimant and his wife are the sole shareholders of Thompson Enterprises, by 

accepting final payment on behalf of the company, the Claimant released any rights to further 

recovery regarding injuries allegedly caused by the Deepwater Horizon oil spill, to the 

RP/GCCF. As stated in the release:

“[r]eleased Parties means anyone who is or could be responsible or liable in any way for the 

Incident or any damages related thereto, whether a person, company or governmental entity, 

including . . . the federal Oil Spill Liability Trust Fund . . . .”

Any payment from the Oil Spill Liability Trust Fund (the Fund) requires the acquisition of rights 

from the RP. Because these rights have been released by the Claimant to the RP/GCCF, the 

Claimant cannot also recover from the Fund. The subrogation of the Claimant’s rights to BP is 

made clear in the release by the following language:

“... As this Release is fully and completely resolving, together with all other Claims, Claimant’s 

claim under OPA, BP is hereby subrogated to any and all rights that Claimant has arising from 

the Incident.”

Second, Claimant’s argument that the rights of Thompson Enterprises are distinct from his rights 

as an individual is disingenuous. He sought and received reimbursement of certain of his alleged 

lost profits from GCCF as an individual and the same alleged lost profits as Thompson 

Enterprises. Also, a review of the administrative record reflects that while he and his wife owned 

two of the properties as individuals the financing for those properties was provided by Thompson 

Enterprises LLC. Therefore, the Claimant as an individual and the Claimant and his wife as 

manager and co-manager of Thompson Enterprises LLC are not distinguishable.

 

Based on the foregoing, this claim is denied upon reconsideration on the grounds that Claimant, 

when he and his wife executed the Release and Covenant Not to Sue in their capacities as 

manager and co-manager of Thompson enterprises LLC, released all their rights to BP/GCCF 

and have no rights that can be acquired by the Oil Spill Liability Trust Fund to recover from the 

responsible party.

Claim Supervisor: Thomas Morrison

Date of Supervisor’s review: 5/16/12

Supervisor Action: Denial on reconsideration approved

Supervisor’s Comments: 

10 GCCF Release and Covenant Not To Sue (For Business Claimants), signed on 17 June 2011.