JamisonMoneyFarmer PC oil spill claimants’ team, from left: Bryan Chandler, Lynn Osborn, Bobby Bragg and Joel Lake.
Shortly after the Deepwater Horizon oil settlement was reached in the spring of 2012, it was obvious that the amount of work necessary to file the claims by the April 2014 deadline would be overwhelming. And since part of the settlement agreement required accounting expertise, extensive networking and referrals among plaintiff law firms and accounting firms would be necessary.
Lake, who heads the BP claims team for JMF, notes that JMF’s initial strategy was to form a small core team that would work on the settlement claims until reaching a comfortable point on the learning curve. The idea was for a few team members to learn the correct process and then impart that experience to new members of the team, which has grown from five to 14 people over the past 12 months.
Given the complexity of the agreement, that has not been easy. The part of the settlement that determines who is eligible for damages and how to calculate the damages is 17 pages long. The claims calculation process has two parts: revenue analysis, which determines if a business qualifies for a claim, and the profit analysis, which calculates the amount of the claim. The revenue analysis portion, including preparation and review time, can be less than two hours. But it can take considerably more time if a business has claims for multiple locations, according to Lake.
Lake says all claims are reviewed by BP, its attorneys and accountants. That review process can lead to questions or requests for more information, and BP has the right to appeal the compensation calculation of the claim. In light of this review process, it is critical that the claims are accurate and properly documented.
Although CPAs are known for being buttoned-up and numbers-oriented, communication skills also are very important for members of Lake’s team. “Initially, we needed to communicate our process internally and educate business owners and our referral network about the settlement and related eligibility requirements,” Lake says. “We are still talking frequently with business owners who aren’t aware of the extent of the settlement or that they may be eligible.