© 2012 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
A $1.3 billion contract between Dallas-based Celanese Corporation and Houston-based Southern Chemical Corporation is valid and will continue until the agreement terminates in 2015, a Houston jury ruled last week.
The dispute dates back to 2005, when Southern made a deal with Celanese to supply Celanese with methanol until 2015 – the year the acetyls producer expects to have its own methanol plant up and running.
But two years later, Southern decided it wanted to end the working partnership, claiming that Celanese violated the supply contract by using the provided methanol for purposes other than internal use by selling it to third parties. Southern sued, seeking compensatory damages of $1.3 billion, pre- and post-judgment interest, attorneys’ fees and punitive damages.
The Harris County jury on Friday ruled in Celanese’s favor, finding that the Dallas company did not violate the terms of the contract, and that Southern needs to continue supplying methanol until the agreement expires in 2015.
The attorneys who represented Celanese were all from McDermott Will & Emery’s Chicago office.
Gjon N. Nivica, Jr., senior vice president, general counsel and corporate secretary of Celanese, said he was satisfied with the outcome.
“We are pleased with the jury’s verdict and expect Southern to continue to supply methanol under the terms of our contract,” he said.
Representing Southern were Houston lawyers Jeffrey W. Chambers, Eileen O’Neill, Tim Lankau and Wesley A. Jackson of Ware, Jackson, Lee & Chambers.
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