One of the first steps in analyzing any potential BP oil spill business suit for a financial institution is determining which geographic zone the physical business calls home. Under the BP oil spill settlement, all states that border the Gulf of Mexico have been divided into four economic loss zone based upon the effects that the oil spill had on these different areas. Zones A and B cover most coastal waters, while Zones C and D cover a wide swath of inland areas. It is critical to know the zone your business is located in, because the zone will dictate the causation test a business must pass in order to qualify for compensation from BP.
If a business is located in Zone A, there will be no need for the business to pass any of the causation tests. Being a Zone A business makes your claim straightforward; because if you lost income for any reason, your claim can proceed straight into an analysis on how much compensation your business is owed. If your business is located within Zone C or D, you will be required to pass certain causation tests in order to receive compensation. The main test requires proof that your total revenues during April- December of 2010 went down a certain percentage from the previous year and then went back up at certain percentage in 2011. This is what the BP settlement agreement refers to as a “V-shaped revenue pattern.” If a business revenue pattern matches this pattern, your claim can proceed to an analysis on how much compensation you are owed.
Many Florida Gulf Coast counties, cities, towns and communities will be located in one of the four zones set up by the BP settlement agreement and thereby qualify for compensation. To determine the zone that your Florida business is located in, and to discuss filing a BP oil spill claim, contact the office of Frank Charles Miranda, P.A. today to discuss your potential claim.