The trader asserted, “This was a fortuitous event that arose from Phoenix’s neglect in not disclosing the true nature of the oil delivered to Grey Rock.” Grey Rock depicted the situation as an unexpected event, resulting from Phoenix’s lack of transparency.
Liberty Mutual Contamination Lawsuit : Enormous Losses
Grey Rock, a supplier of crude oil to Chevron, emphasized the gravity of the situation. They revealed that Chevron had purchased more than 850,000 barrels of oil from Grey Rock between September 2020 and June 18, 2021, with no issues until the last uncontaminated delivery.
On June 24, 2021, Grey Rock delivered a batch of oil to Chevron, which the company promptly rejected due to high levels of organic chlorides. According to Grey Rock, the contract with Chevron stipulated that the oil should contain less than one part per million organic chlorides, making this incident an exceptional breach.
Legal Battles and Damages
Adding to the complexity of the case, Grey Rock engaged in a separate legal battle with Phoenix in a Texas state court, ultimately securing a $1.3 million settlement. The total liquidated damages for Grey Rock now stand at a staggering $2.4 million, including $260,000 in attorney fees related to the Phoenix suit and an additional $230,000 for barge demurrage.
