Exxon Valdez Oil Spill (EVOS) Litigation

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Exxon Valdez Oil Spill (EVOS) Litigation. Bruce Gabrys, CPA, MBA MIKUNDA, COTTRELL & Co. CPAs, 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. - PowerPoint PPT Presentation

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  • Exxon Valdez Oil Spill (EVOS) Litigation Bruce Gabrys, CPA, MBAMIKUNDA, COTTRELL & Co. CPAs, 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 & CrewmembersFish ProcessorsTender VesselsCannery Workers Subsistence UsersOiled Land OwnersRecreational Business OwnersNative CorporationsMunicipalitiesAquaculture Associations

  • SETTLEMENT COMPONENTS

    Compensatory Damages (lost income, vessel & permit devaluation)Accrued Interest on AwardPunitive Damage AwardAttorney Fees*

  • Estimated Punitive Damage Award

    Punitive DamagesPlus Interest (5.9%) Gross AwardLess Deductions: 3% Case Mgmt Fee Seattle Seven Native Corporations 19.4% Attorney Fee Estimated CostsTo 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 3,77927,98833,534

  • Where Claimants Live

  • EVOS Litigation

    March 23, 1989 Exxon Valdez Spills 11 Million gallons of Crude Oil into Prince William Sound1994 Jury Awards $5 Billion in Punitive Damages2006 After 12 Years of Appeals Ninth Circuit Court Reduces Punitive Award to $2.5 Billion2007 Exxon Appeal to the Supreme Court is GrantedOral Arguments Set for February 27, 2008Decision Expected by June 2008. If Upheld, Money will be Distributed in Late 2008 or Early 2009

  • Issues Before Supreme CourtPunitive Damages Only IssueCompensatory Damages Already Resolved and Paid1818 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 IssuesOver 6,000 Claimants Have Died Since 1989 Exxon Valdez Oil SpillClosed Estates: Will Need to be ReopenedOpen Estates: Letters Testamentary or Letters Administration Must be Dated Within 12 Months of Settlement Award DistributionSee Exxon Qualified Settlement Fund Handout

  • PROPOSED TAX LEGISLATION EVOS Tax Treatment ActSenator Murkowski is Working Hard for EVOS Claimants!IRA Contribution Up to $100,000Three Year Income AveragingExempts Award from Self Employment TaxIncludes Beneficiaries of EstatesResolves Attorney Fee Deduction Issue Claimant Tax Savings Over $200 MillionNot a Done Deal Yet, Needs Your Support!

  • MIKUNDA, COTTRELL & Co., CPAsQUESTIONS?

    BRUCE GABRYS, CPAMIKUNDA, COTTRELL & Co. CPAs3601 C Street, Suite 600Anchorage, AK 99503

    (907) 278-8878 (office)(907) 223-6798 (cell)bgabrys@mcc-cpa.com