CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1451

Claimant Mr. Arthur Mitchell

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $2,000.00

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 28 September 2011, Mr. Mitchell, (the Claimant) presented a claim to the Oil Spill Liability 

Trust Fund (OSLTF) seeking $2,000.00 in loss of profits and impairment of earnings capacity.1

At the time of the oil spill, the Claimant was working as a waiter in a hotel in Houma, 

Louisiana. 2

 The Claimant alleged that he “received less tips after the spill . . . and went from 

earning about $200.00 - $250.00 a month to less than $40.00 a month for about six months.”3

The Claimant alleged that due to a decrease in tips, as well as a reduction in his working hours,

he sustained losses of $2,000.00. In his submission to the NPFC, the Claimant stated that he 

“had to end up quitting because of the drop in tips”4 but also claims that he “was eventually laid 

off.”5

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 14 September 2011.

2 Optional OSLTF Claim Form, dated 14 September 2011.

3 Optional OSLTF Claim Form, dated 14 September 2011.

4 Optional OSLTF Claim Form, dated 14 September 2011. 5 Letter from the Claimant to the NPFC, 22 August 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 28 September 2011;

• Claimant Pay slips from 1/10/10 to 12/10/10;

• Letter to Claimant from the National Pollution Funds Center dated 11 August 2011 

distinguishing between the GCCF and NPFC claims process

• GCCF Interim Claim Submission.

• Verification of Employment Letter from Claimant’s former employer, Quality Hotel, 

dated 19 May 2011.

Prior to presentment to the NPFC, the Claimant presented a Second Quarter Interim Claim 

(ICQ22011) to the RP/GCCF seeking loss of profits and impairment of earnings.6

 The Claimant 

was assigned Claimant ID 3521149 and the ICQ22011 claim was assigned Claim # 9385731.7

 

This claim was denied on 27 May 2011.8

6 GCCF Claimant Status, accessed on 3 October 2011.

7 GCCF Claimant Status, accessed on 3 October 2011.

8 GCCF Claimant Status, accessed on 3 October 2011.

 
On 28 September 2011, the Claimant presented this claim to the NPFC, seeking loss of profits 

and impairment of earnings capacity in the amount of $2,000.00. The NPFC may adjudicate this 

claim to the extent that this claim has been 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 for improper presentment. 9

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 sustained an actual loss or reduction in income, and (2) that any loss of 

income sustained by a claimant was caused by effects of the Deepwater Horizon oil spill. 

The Claimant alleged that business at the hotel in Houma, Louisiana, where the Claimant was 

employed slowed following the oil spill, thereby causing the Claimant to sustain a reduction in 

his working hours as well as a decrease in earned tips.10 The NPFC contacted a manager of the 

hotel to verify the Claimant’s employment status and reason for his loss of income. The 

manager stated that the Claimant was terminated for reasons unrelated to the Deepwater Horizon 

oil spill and confirmed that the Claimant did not voluntarily leave his position, as indicated on 

his OLSTF Claim form.11 The Claimant has not provided any documentation or other evidence 

to indicate that his position was actually affected by the Deepwater Horizon oil spill. 

Under 33 C.F.R. § 136.9, persons submitting false claims, or making false statements in 

connection with claims under this part, may be subject to prosecution under Federal law, 

including, but not limited to 18 U.S.C. § 287 and 1001. In addition, persons submitting written 

documentation in support of claims under this part, which they know or should know, is false 

may be subject to civil penalty for each claim. 

This claim is denied because the Claimant (1) has materially misrepresented elements of this 

claim in order to falsely obtain funds from the Federal Government, (2) failed to meet his burden 

to prove that he sustained a loss in profits in the amount of $2,000.00, and (3) failed to prove 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: 10/4/11

Supervisor’s Action: Denial approved

Supervisor’s Comments:

9 33 C.F.R. § 136.133(a).

10 Optional OSLTF Claim Form, dated 14 September 2011. 11 PHONECON: NPFC Staff and Quality Hotel Staff, 3 October 2011.