BP Exploration & Production, Inc. v. Claimant ID 100281817

NBA player David West negotiated a contract with the New Orleans Hornets before the Deepwater Horizon oil spill. West received the full $45 million amount specified in his contract, but still submitted an "Individual Economic Loss Claim" under the Deepwater Horizon Economic and Property Damages Settlement Agreement. The Claims Administrator for the Agreement awarded West almost $1.5 million in "lost" earnings.The Fifth Circuit reversed the district court's denial of discretionary review of the Settlement Appeal Panel's decision affirming the award and held that the district court abused its discretion in this case when the decision not reviewed actually contradicted or misapplied the Agreement. Under the circumstances, West expected to earn in the absence of the spill precisely what he did earn after it. Therefore, he did not suffer unexpected damages, and Exhibit 8A did not apply to him. The court also held that West did not suffer actual or unexpected "losses" or damages, because he earned exactly what he was entitled to receive under his contract. The court explained the fact that he received less money in 2010 than in 2009 did not mean he "lost" anything or was "damaged" in any way. Rather, it meant only that he agreed to a front-loaded contract, and he agreed to do so many years before the spill. View "BP Exploration & Production, Inc. v. Claimant ID 100281817" on Justia Law