exxon valdez oil spill (evos) litigation

Exxon Valdez Oil Spill (EVOS) Litigation

Bruce Gabrys, CPA, MBAMIKUNDA, COTTRELL & Co. CPA’s, Inc.

(907) 278-8878 (office)(907) 223-6798 (cell)

February 25, 2008

BRUCE J. GABRYS

Certified Public Accountant

Commercial Fisherman (F/V Blue Chip II)

Exxon Valdez Oil Spill Claimant

TYPES OF CLAIMANTS

Fishermen & Crewmembers Fish Processors Tender Vessels Cannery Workers Subsistence Users Oiled Land Owners Recreational Business Owners Native Corporations Municipalities Aquaculture Associations

SETTLEMENT COMPONENTS

Compensatory Damages (lost income, vessel & permit devaluation)

Accrued Interest on Award Punitive Damage Award Attorney Fees*

Estimated Punitive Damage Award

Punitive Damages

Plus Interest (5.9%)

Gross Award

Less Deductions:

3% Case Mgmt Fee

Seattle Seven

Native Corporations

19.4% Attorney Fee

Estimated Costs

To Claimants B/4 Taxes

2,500,000,000

2,200,000,000

$4,700,000,000

141,000,000

501,000,000

211,300,000

745,600,000

40,000,000

$3,061,100,000

Size of Individual Awards

Dollar Amount

$4.0 Million to $800,000

$800,000 to $400,000

$400,000 to $80,000

$80,000 or Less

Total

Number of Individuals

840

927

3,779

27,988

33,534

Where Claimants Live

EVOS Litigation

March 23, 1989 Exxon Valdez Spills 11 Million gallons of Crude Oil into Prince William Sound

1994 Jury Awards $5 Billion in Punitive Damages 2006 After 12 Years of Appeals Ninth Circuit Court

Reduces Punitive Award to $2.5 Billion 2007 Exxon Appeal to the Supreme Court is Granted Oral Arguments Set for February 27, 2008 Decision Expected by June 2008. If Upheld, Money

will be Distributed in Late 2008 or Early 2009

Issues Before Supreme Court

Punitive Damages Only Issue Compensatory Damages Already Resolved

and Paid 1818 Decision in The Amiable Nancy

Supreme Court Case (Actions of the Captain) Clean Water Act (Does it Preempt Punitive

Damage Awards) Justice Alito has Recused Himself from Case,

Owns Exxon Stock

Estate Planning Issues

Over 6,000 Claimants Have Died Since 1989 Exxon Valdez Oil Spill

Closed Estates: Will Need to be Reopened Open Estates: Letters Testamentary or

Letters Administration Must be Dated Within 12 Months of Settlement Award Distribution

See Exxon Qualified Settlement Fund Handout

PROPOSED TAX LEGISLATION

“EVOS Tax Treatment Act” Senator Murkowski is Working Hard for EVOS

Claimants! IRA Contribution Up to $100,000 Three Year Income Averaging Exempts Award from Self Employment Tax Includes Beneficiaries of Estates Resolves Attorney Fee Deduction Issue Claimant Tax Savings Over $200 Million Not a Done Deal Yet, Needs Your Support!

MIKUNDA, COTTRELL & Co., CPA’s

QUESTIONS?

BRUCE GABRYS, CPAMIKUNDA, COTTRELL & Co. CPA’s

3601 C Street, Suite 600Anchorage, AK 99503

(907) 278-8878 (office)(907) 223-6798 (cell)

bgabrys@mcc-cpa.com