Pasadena Tank, BP at odds over third-party audit

John Suayan, Galveston Bureau Apr. 11, 2013, 3:59pm

GALVESTON - Pasadena Tank Corp. is suing BP Products North America Inc. and BP Amoco Chemical Co. over an audit it finds questionable. 

A lawsuit filed April 5 in Galveston County District Court states that PTC supposedly owes BP approximately $3 million, but insists the aforementioned audit is a violation of their contractual obligations to one another.

Both parties entered into an agreement in late 2006 to which PTC was to provide BP tank maintenance services, engineering services and materials in exchange for compensation.

The plaintiff was to be paid a fixed sum per man hour based on the job classification of the individual performing the work.

According to court papers, the companies maintained strong ties until 2011 when BP purportedly brought Connolly Inc. to audit the subject contract.

Connolly, which is paid when it recovers money, "has a biased interest in finding overcharges, even if that means misinterpreting the contract contrary to the intent of the parties and contrary to the course of the performance by the parties," they say.

PTC further asserts that Connolly determined it improperly charged the respondents approximately $3.3 million though the findings "contradicted the plain language of the contract and the parties' prior practices," adding BP continuously demanded payment.

The suit ultimately alleges the defendant is undermining PTC's business operations.

A jury trial is requested.

Attorney Douglas D. D'Arche of Baker & Hostetler LLP in Houston is representing the complainant, and Galveston County 122nd District Court Judge John Ellisor is presiding over the case.

Case No. 13-CV-514

More News