CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1570

Claimant Jerry Pappas

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $650.50

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 18 November 2011, Jerry Pappas (the Claimant) presented a claim to the Oil Spill Liability Trust 

Fund (OSLTF) for $650.50 for loss of profits and impairment of earnings capacity resulting from the 

Deepwater Horizon oil spill. 

The Claimant placed a contract in 21 April 20101 to buy investment beach property in Fort Walton 

Beach, Florida. 2

 The Claimant states that the oil spill affected rentals in the area and he cancelled his 

contract.3

 The Claimant seeks reimbursement for the cost of the property inspection and bank fees 

for the financing.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.

(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 

1 Release and Cancellation of Contract for Sale and Purchase signed 27 June 2010 2 OSLTF Claim Form signed by Claimant 08 November 2011

3 Release and Cancellation of Contract for Sale and Purchase signed 27 June 2010

4 OSLTF Claim Form signed by Claimant 08 November 2011

 
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, Claimant submitted the following documentation:

• OSLTF Claim Form signed by the Claimant and dated 08 November 2011

• Release and Cancellation of Contract for Sale and Purchase signed 27 June 2010

• Coastal Home Inspection Professional Services invoice dated 29 April 2010 for $300.00

• Copy of Claimant’s check dated 26 April 2010 to Coastal Home Inspection Professional 

Services invoice for $300.00

• Consumer Finance Line of Credit Closeout Ticket for finance fees for $350.50 

Before presenting the claim to the NPFC, the Claimant filed an Emergency Advance Payment (EAP) 

with the GCCF. The claim was assigned Claimant ID #1090699 and claim #151259. 5 The EAP 

claim was denied on 23 November 2010.6

 Additionally, Claimant filed a Final Payment (FP) claim 

with the GCCF. The claim was assigned claim #9183194.7

 The FP claim was denied on 30 April 

2011.8

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

claims is the same as the subject matter of the claim before the NPFC, i.e., Claimant lost earnings as 

a result of the Deepwater Horizon oil spill. The NPFC has not been able to confirm the amounts of 

the claims as of the date of this determination. The NPFC deems the GCCF claims to be properly 

presented to the Responsible Party. To the extent the amount of the claims presented to the 

Responsible Party are equal to or greater than the amount currently presented to the NPFC, the 

subject claim is properly presented to the NPFC. Accordingly, this Claim Summary Determination 

for NPFC Claim N10036-1570 considers and addresses the loss of earnings up to the amount of 

5 GCCF On-Line Claim Status Report 6 GCCF Denial Letter dated 23 November 2011 7 GCCF On-Line Claim Status Report 8 GCCF Denial Letter dated 30 April 2011

 
$650.50 for all claims presented to the Responsible Party, specifically: #151259 EAP and #9183194 

FP.

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 Claimant cancelled his sales contract on property located in Fort Walton Beach, Florida,9

 and 

seeks reimbursements for the cost of the property inspection and bank fees for the financing.10 This 

claim is denied because these costs are not OPA compensable as loss of earnings and profits under 

the Oil Pollution Act (OPA). 

Claim Supervisor: Claims Adjudication Division

Date of Supervisor’s Review: 28 November 2011

Supervisor’s Action: Denial approved

Supervisor’s Comments: 

9 Release and Cancellation of Contract for Sale and Purchase signed 27 June 2010

10 OSLTF Claim Form signed by Claimant 08 November 2011