In a courtroom drama that unfolded on Monday, a Mississippi-based pipeline construction company, M.G. Dyess Inc., accused a Marathon Petroleum Corp. subsidiary of concocting an excuse to withhold the final $4.1 million payment in a $40 million project. The trial, filled with twists and turns, centers around the completion of a 14-mile natural gas pipeline in West Virginia.
Allegations and Counterarguments
M.G. Dyess Inc. claims to have fulfilled its end of the deal and vehemently asserts its right to the $4.1 million retainage specified in the contract. The company’s attorney, William E. Dorris, argued passionately before the Denver jury, asserting that their team completed the project, and it’s time for Marathon Petroleum Corp’s subsidiary to honor its financial commitment.
Dorris underscored that MarkWest’s own inspectors had approved each phase of the project, and natural gas was flowing through the pipeline after successful testing. Despite these achievements, Marathon Petroleum Corp. allegedly refused to release the final payments.
Marathon Petroleum Corp Owed $4 Million Deal : MarkWest’s Defense
On the other side of the courtroom, representing MarkWest Liberty Midstream & Resources LLC, attorney Michael E. Lindsay countered that the completion status of the project was MarkWest’s prerogative. He argued that M.G. Dyess never responded to MarkWest’s letter highlighting unfinished tasks. Lindsay further emphasized that MarkWest faced financial repercussions due to M.G. Dyess’ purported shortcomings, costing them nearly $700,000.
Marathon Petroleum Corp Owed $4 Million Deal : A History of Legal Entanglements
This legal skirmish is not the first between the two entities. A prior dispute over the same three pipeline contracts resulted in a state appellate panel reinstating a $26 million jury award against MarkWest. Additionally, the Colorado Supreme Court declined to review the case, and the jury in the earlier dispute awarded MarkWest $4.5 million in liquidated damages.
