CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1575

Claimant 

Type of Claimant Corporate (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $24,883.00

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 certain 

individual and business claims on behalf of BP.

CLAIM AND CLAIMANT

On 22 November 2011, Mr. John J. Cranley, legal representative of 

(collectively, the Claimant) presented a claim to the Oil Spill Liability Trust Fund (OSLTF) seeking 

$24,883.00 in loss of profits damages resulting from the Deepwater Horizon oil spill.1

 

The Claimant worked at Carrabas Italian Grill, in Naples, Florida from March to December 2010.2

 

The Claimant alleged that “it is clear that the entire restaurant industry suffered after the Spill; 

accordingly, suffered economically because of the Spill.”3

 

The Claimant calculated that he lost $24,883.00 in earnings by comparing his 2009 and 2010 

income.4

 In 2009, the Claimant worked for two companies in Cinncinnati, Ohio as a “Business 

Concierge” for an office building, and as a client services representative for an insurance agency.5

 

The Claimant alleged that because these jobs are both in the “hospitality/service industry” they are 

“analogous to the restaurant business” and should provide an indication as to what the Claimant 

could have earned as a server at Carrabas Italian Grill in Naples, Florida.6

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 § 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:

1 Letter from the Claimant to the NPFC, 15 November 2011. 

2 Earnings Statements, OS Restaurant Services, 3/17/2010 to 12/22/2010. 3 Letter from the Claimant to the NPFC, 15 November 2011.

4 Letter from the Claimant to the NPFC, 15 November 2011.

5 Letter from the Claimant to the NPFC, 15 November 2011, indicates that the Claimant worked for 51 Co. and John 

J. Cranley Co. in 2009.

6 Letter from the Claimant to the NPFC, 15 November 2011.

 
(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 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:

• Letter authorizing legal representative, John J Cranley IV;

• Claim cover letter, 15 November 2011;

• 2008 Form 1040, showing adjusted gross income of $35,546.00;

• 2008 Schedule C (Form 1040);

• 2008 Schedule E (Form 1040);

• 2008 Schedule SE (Form 1040);

• 2008 W-2 and Earnings Summary;

• 2008 W-2 and Earnings Summary;

• 2009 Form 1040, showing adjusted gross income of $36,365.00;

• 2009 Schedule M (Form 1040A or 1040);

• 2009 W-2 Wage and Tax Statement;

• 2009 W-2 Wage and Tax Statement;

• 2010 Form 1040, showing adjusted gross income of $12,679.00;

• 2010 Schedule M (Form 1040A or 1040);

• 2010 Schedule K-1 (form 1065);

• 2010 Form W-2 Wage and Tax Statement;

• Xavier University college transcript, B.A., 1998;

• Earnings Statement, 3/17/2010;

• Earnings Statement, 3/31/2010;
• Earnings Statement, 4/14/2010;

• Earnings Statement, 4/28/2010;

• Earnings Statement, 5/12/2010;

• Earnings Statement, 5/26/2010;

• Earnings Statement, 6/09/2010;

• Earnings Statement, 6/23/2010;

• Earnings Statement, 7/07/2010;

• Earnings Statement, 7/21/2010;

• Earnings Statement, 8/04/2010;

• Earnings Statement, 8/18/2010;

• Earnings Statement, 9/01/2010;

• Earnings Statement, 9/15/2010;

• Earnings Statement, 9/29/2010;

• Earnings Statement, 10/13/2010;

• Earnings Statement, 10/27/2010;

• Earnings Statement, 11/10/2010;

• Earnings Statement, 11/24/2010;

• Earnings Statement, 12/08/2010;

• Earnings Statement, 12/22/2010;

• Electronic Pay Stubs, Collier Public Schools, March – November 2011;

• Unemployment Compensation Records, January – March 2011;

• Letter from the Claimant, requesting Re-Review of Claim ID 3525896;

• Affidavit of John J. Cranley III, 20 July 2011;

• Affidavit of John McLinden, 20 July 2011;

• Article, Best Jobs for New College Graduates Now;

Prior to presentment of this claim to the NPFC, the Claimant alleged to have presented this claim for 

loss of profits to the RP/GCCF. The Claimant was assigned Claimant ID 3525896. 7

 The Claimant 

alleged that this claim was initially denied, and again denied on re-review by the RP/GCCF.8

 The 

NPFC does not have sufficient information to independently verify that this claim has been presented 

to the RP/GCCF. 9

On 22 November 2011, the Claimant presented this claim to the NPFC, seeking $24,883.00 in loss of 

profits and earnings capacity damages. 10 The NPFC may adjudicate this claim to the extent that this 

claim was first presented to the RP/GCCF. Any damages now presented to the NPFC, which were 

not first presented to the RP/GCCF, are denied for improper presentment. 11 

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.

This claim is denied because the Claimant failed to demonstrate that he sustained an actual financial 

loss as a result of the Deepwater Horizon oil spill.

7 Letter from the Claimant to the NPFC, 15 November 2011.

8 Letter from the Claimant to the GCCF, requesting re-review for Claimant ID 3525896 9 Claimant’s GCCF status is not available online due to attorney representation. 10 Letter from the Claimant to the NPFC, 15 November 2011. 11 33 C.F.R. § 136.103(a).

 
This claim is based on the Claimant’s loss of income at Carraba’s Italian Grill in Naples, Florida. 

The Claimant alleged that the restaurant industry in Naples, Florida was generally affected by the oil 

spill, thereby resulting in the Claimant’s loss of income.12 However, the Claimant has not presented 

any evidence to show that his income was reduced following the Deepwater Horizon oil spill, nor has 

he demonstrated that any alleged reduction in income was the result of the discharge or substantial 

threat of discharge of oil caused by the Deepwater Horizon oil spill as opposed to any other potential 

causes. 

The Claimant presents pay stubs from Carrabas Italian Grill, showing that he began working in 

March of 2010 and left in December of 2010. Throughout that time, the Claimant’s working hours 

fluctuate significantly each pay period. Therefore, the Claimant has not shown that his income was 

actually reduced for a certain period of time as compared to the Claimant’s pre/post-oil spill income 

levels at Carrabas. Furthermore, according to a Manager at the Carrabas location where the Claimant 

was employed, business at this location is seasonal, with the season running from approximately 

November to March. 13 The Manager indicated that the Claimant’s hours were likely lower because 

he worked only during the restaurant’s “off-season.”14

Additionally, the Claimant has not presented evidence to substantiate his claimed loss amount of 

$24,883.00. The Claimant’s prior earnings from employment for two companies in Cincinnati, Ohio 

in 2009 does not serve as an indication of what the Claimant could have earned working at this 

particular restaurant in Naples, Florida. Therefore, the Claimant’s loss amount, which he calculated 

by comparing 2009 and 2010 income, is not a valid reflection of any losses the Claimant alleged to 

have incurred in his position at Carrabas Italian Grill.

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

sustained a loss in the amount of $24,883.00, 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: 12/1/11

Supervisor’s Action: Denial approved

Supervisor’s Comments: 

12 Letter from the Claimant to the NPFC, 15 November 2011. 13 PHONECON: NPFC Staff and manager of Carrabas Italian Grill, Naples, Florida. 14 PHONECON: NPFC Staff and manager of Carrabas Italian Grill, Naples, Florida.