American Completion Tools sued over breach of contract allegations

By Robbie Hargett | Aug 25, 2015

A Canadian equipment supplier is suing a Harris County oil and gas tool manufacturer over an alleged breach of contract involving the return of unused product.

Motion Industries (Canada) Inc. filed a civil action complaint July 31 in the Houston Division of the Southern District of Texas against American Completion Tools Inc. (ACT), citing breach of contract.

The complaint states that in September 2013, Motion's predecessor, Commercial Solutions Inc., and ACT entered into an agreement wherein ACT would sell and Motion would purchase roughly $1 million of products including piping material and minifolds, and that Motion could return any unused products to ACT for a full cash refund less freight costs and a restocking fee.

However, according to the complaint, when Motion exercised its right to return unused product for a full refund in March, ACT refused to accept the product and to issue the full cash refund, materially breaching the agreement.

Motion seeks to be awarded all damages, plus attorney fees and court costs. The company is represented by Todd Mensing of Ahmad, Zavitsanos, Anaipakos, Alavi and Mensing of Houston.

Houston Division of the Southern District of Texas case number 4:15-cv-02206.

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