Won Jury Verdict Resulting in $2.3 Million Judgment in Breach of Contract Case for Flint Hills Resources
Date: December 2007
Case Name: Flint Hills Resources, LP v. Lovegreen Turbine Services, Inc.
Jurisdiction: U.S. District Court for the District of Minnesota
Flint Hills Resources LP
Our professionals represented Flint Hills Resources LP, a major oil company, in a lawsuit against a local contractor that left a rag in a compressor in the gasoline unit of a refinery, causing millions of dollars of business-interruption damages. Flint Hills had hired Lovegreen Turbine Services, Inc., a contractor, to overhaul a gas compressor in one of the most important units of the refinery. In the course of the overhaul, Lovegreen left a rag in the compressor, which eventually became lodged inside the compressor. This resulted in around $7 million in business interruption damages for Flint Hills, $2 million of which was effectively uninsured.
The case was tried at a time when oil prices were at an all-time high, lending to a fair amount of animosity toward oil companies. In addition, the movie There Will Be Blood, which focuses on the corrupt activities of an oil-industry family, was in the theaters. Despite these factors, after a two-week trial a federal jury awarded Flint Hills a verdict of breach of contract and 100 percent negligence on the part of Lovegreen.