Sale of marine fuel subject of lawsuit

Kelly Holleran Apr. 25, 2011, 5:30am

A Houston corporation has filed suit against a company that it claims absconded tens of thousands of dollars worth of marine fuel.

Sun Coast Resources claims it sold defendant Clipper Bulk 100 metric tons of marine gasoil in September.

MGO (Marine Gas Oil) is a distillate fuel oil, which means it is distilled from crude oil. MGO is similar to No. 2 fuel oil.

Abiding by the agreement, Sun Coast delivered the marine gasoil to an oceangoing bulk carrier, the M/V Chios Voyager, at the Port of Beaumont, according to the complaint filed April 13 in Jefferson County District Court.

The ship left the harbor on Sept. 2, but it was not until one week later, on Sept. 10, that Clipper Bulk tested the marine gasoil and found it unacceptable, the suit states.

"By this time, the vessel was in the Caribbean Ocean," the suit states.

"On September 14, 2010, nearly two weeks later, and when it was too late for Sun Coast to assist Clipper Bulk in removing the cargo, Clipper Bulk elected to reject the MGO alleging that it was off-specification," the complaint says.

When the ship arrived in Port Lisas, Trinidad, Clipper Bulk sold the marine gasoil for $17,940, according to the complaint. However, Sun Coast claims it still has not received payment for the oil.

In its complaint, Sun Coast alleges breach of contract and conversion against the defendants.

Sun Coast is seeking actual damages of $74,155.08, plus punitive damages, interest and other relief the court deems just.

James T. Brown, Paxton N. Crew and Cameron A. Hatzel of Legge, Farrow, Kimmitt, McGrath and Brown in Houston will be representing it.

The case has been assigned to Judge Milton Shuffield, 136th District Court.

Case No. D189-774

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