exxon valdez oil spill (evos) litigation
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Exxon Valdez Oil Spill (EVOS) Litigation. Bruce Gabrys, CPA, MBA MIKUNDA, 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. - PowerPoint PPT PresentationTRANSCRIPT
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)