A Houston district court jury found Dallas-based Energy Transfer Partners LP (ETP) breached its contract with competitor Enterprise Products Partners LP by failing to maintain the Old Ocean natural gas pipeline so Enterprise could serve its Gulf Coast customers, law firm Rusty Hardin & Associates LLP said April 24. The law firm represented Enterprise.
The case is Enterprise Texas Pipeline LLC v. Energy Transfer Fuel LP, No. 2013-28613.
The jury awarded Enterprise $2.2 million in reimbursed lease payments, and $1.5 million in legal fees after the four-week trial in Houston’s 164th District Court. Enterprise contended that ETP lowered the pipeline pressure in a portion of the pipe it deliberately failed to maintain. Both companies use the pipeline.
Jurors found ETP did not honor the obligations of a 1980 contract regarding maintenance of the 240-mile Old Ocean pipeline. Enterprise used workarounds, including building its own $16 million seven-mile segment at the end of the pipeline.
Previously, ETP won the first round of case against Enterprise in Dallas that is currently being appealed. Also previously, Rusty Hardin & Associates won an $8.5 million case for Smith Energy Co. in West Texas.
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