We represented the Claimant, U.S. Pipeline, Inc., in an arbitration proceeding against Denbury Resources, Inc. and affiliated entities. The dispute arose out of U.S. Pipeline’s construction of a 272-mile long carbon-dioxide transmission pipeline for Denbury. The construction project, initially estimated at nearly $250 million, was beset with delays and additional work, which we contended was primarily due to incomplete engineering and problems with permitting and right-of-way acquisition. U.S. Pipeline incurred substantial additional construction costs in performing its work. U.S. Pipeline brought suit for breach of the construction contract, and sought damages in excess of $50 million. After defeating potentially dispositive summary judgment motions filed by Denbury, the case was resolved on the eve of trial on terms favorable for our client. The settlement amount is confidential.
