In what can be regarded as the biggest lawsuit against a T&T company, a New York firm has filed a breach of contract case against the Petroleum Company of Trinidad and Tobago (Petrotrin) in the US Federal Court in Manhattan, New York, seeking no less than $12 billion for their losses over the collapse of a joint venture project.
World GTL Incorporated and its subsidiary, World GTL (St Lucia), filed the lawsuit in the US District, Southern District of New York, on February 23.
The case has been put on the docket of 77-year-old Judge Lawrence McKenna, one of the senior judges of the court. The action arose out of the alleged wrongful taking and expropriation of a nearly-completed $3 billion gas-to-liquid plant, being constructed inside the Petrotrin refinery, Pointe-a-Pierre. The lawsuit was filed by Manhattan law firm, Thompson and Knight, whose address is listed as 919 Third Avenue, New York. Petrotrin has 21 days from the date of service to respond, failing which World GTL would enter a default judgment, with a demand for the compensation. No one could say with any certainty if Petrotrin was served with the US court documents. In the lawsuit, World GTL and its subsidiary are seeking compensation against Petrotrin for alleged fraud, negligent misrepresentation, breach of contract, unjust enrichment, negligence and expropriation (take from the owner for public use or benefit).
According to the documents filed in court, in May 2004, World GTL and Petrotrin entered into a memorandum of understanding to build a gas-to-liquid plant and four months later, a project agreement for the plant to be built at Pointe-a-Pierre. World GTL (Trinidad) was in charge of the project. The plaintiffs said at the behest of Petrotrin, Credit Suisse, was among the financial institutions approached to provide funding, largely because a former T&T Finance Minister was at Credit Suisse. The financial institution agreed to provide a US $125 million credit facility and on January 12, 2007, the plaintiffs and Petrotrin entered certain financial agreements. Two months later, all construction was suspended as a result of sulfur emissions from the Petrotrin refinery. According to the documents, the plant was emitting sulfur dioxide and contaminating the entire facility. World GTL said despite Petrotrin's plans to correct the situation, there continued to be plant evacuations and shutdowns. It contended that one worker died and the autopsy report listed the cause of death as, "acute respiratory distress syndrome due to toxic fumes inhalation."
But World GTL experienced problems with their loan facility with Credit Suisse, and Petrotrin moved to acquire the loan to expropriate the gas-to-liquid facility, the plaintiffs added. According to World GTL, the facility was worth $3 billion. They claimed Petrotrin was able to acquire the plant by paying off the Credit Suisse loan, which it had jointly and severally guaranteed, and making a $100 million "make-whole' payment. According to the plaintiffs, "it became clear during these negotiations, that Petrotrin wanted total control, even to the extent of not being willing to enter into a viable management agreement with World GTL, who had been managing the construction of the project since its inception." On September 25, 2009, Petrotrin appointed a receiver for WGTL-Trinidad, who took control of the facility at Pointe-a-Pierre.
?ABOUT THE PLAINTIFFS
?World GTL Trinidad Limited, a joint venture between World GTL Incorporated and the Petroleum Company of Trinidad and Tobago (Petrotrin), the Government wholly-owned integrated petroleum company, is constructing the first commercial gas-to-liquid facility in the Americas. The plant was expected to be fully operational in 2008.
?THE JUDGE
?Lawrence McKenna, 77, Judge, US District Court, Southern District of New York, Manhattan. Nominated by then President George W Bush on January 24, 1990, to a seat vacated by William C Conner. Confirmed by the Senate on April 27, 1990, and received commission on April 30, 1990. Assumed senior status on May 24, 2002.
