In a previous post, we explored the role of the Oil Pollution Act (OPA) and the Oil Spill Liability Trust Fund (OSLTF) in compensating Louisiana residents who incur oil removal and clean-up costs. These funds are also available for coastal residents who suffer property damage as a result of an oil spill.
According to the U.S. Coast Guard’s National Pollution Funds Center web site, the OPA permits filings for oil-related losses to real and personal property. Real property damage is defined as “injury to or economic losses resulting from destruction of land or buildings.” For example, the owner of oil-fouled waterfront property can file for reimbursement of the costs to restore the property to its pre-spill condition. Or, if the owner decides to sell the property without restoring it, he can submit a claim for the difference between its pre-spill assessed value and the reduced price he receives for the fouled property after the spill.
Personal property damage is “injury to or economic losses resulting from damages to other types property you own or lease besides real property.” For instance, a fisherman can submit a claim for the cost of cleaning or replacing a shrimp net, fishing tackle, or clothing that is fouled by oil.