by Gib Walton and Adam Schiffer
In September 2002 V&E won a nationally-recognized verdict for Fluor Enterprises when a federal court jury in Houston ordered a major chemical company to pay $34.5 million to Fluor in a contract dispute involving the world’s most advanced acrylonitrile plant in Alvin, Texas. The verdict was selected by the National Law Journal as its "Verdict of the Week." Acrylonitrile is a chemical compound found in plastics, nylon and pesticides. The construction contract called for the chemical company to pay Fluor $232 million for construction of the plant. Fluor contended, however, that in the final stages of construction, the chemical company ordered significant changes to the plant. Fluor agreed to make the changes, but informed the chemical company it would require increased manpower and costs. When the project was completed, the chemical company refused to pay Fluor the additional $34.5 million Fluor was owed and claimed Fluor’s workmanship was responsible for the alleged problems and additional costs. Fluor sued to recover the $34.5 million under breach of contract and quantum meruit theories and presented evidence that the late changes the chemical company required were discretionary and should not have been made only 10 months before scheduled completion. Fluor also presented evidence of the tremendous disruption the changes caused to the plant’s construction.
After hearing two weeks of testimony and deliberating for only two hours, the jury unanimously agreed with Fluor that the chemical company had breached the construction contract and actively interfered with the project by making unnecessary, disruptive changes.
Houston partners Gib Walton and Adam Schiffer led the V&E team representing Fluor.
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