CL&M Obtains Judgment Against Sunoco for Breach of Contract Based on Defective Oil Storage Tanks

CL&M partner Christine A. Fazio, counsels Judith Wallace and Victor J. Gallo and associate Andriy R. Pazuniak obtained a finding of liability against Sunoco, Inc. in a federal breach of contract action arising from Sunoco’s improper modifications to oil storage tanks in Marcy, New York. CL&M client, Superior Plus US Holdings, Inc., acquired the oil storage tanks from Sunoco in 2009 and subsequently discovered that the tanks were improperly modified. Superior Plus claimed that Sunoco breached the parties’ sale agreement, which required Sunoco to be in compliance with applicable environmental laws and state license requirements. Judge Thomas P. Griesa of the Southern District of New York granted summary judgment to Superior Plus, holding that Sunoco breached its agreement with Superior Plus and, therefore, Superior Plus was entitled to indemnification of up to $4.125 million from Sunoco for the costs of repairing the tanks. 

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