Petrochemical Settlement

When Kinder Morgan Liquid Terminals, a subsidiary of Kinder Morgan, Inc., experienced significant problems with approximately $5 million worth of double block and bleed plug valves purchased for its liquid terminal operations, it called on EMH to assist. Kinder Morgan had purchased the valves and associated parts from a manufacturer through a distributor, and it was promised it was purchasing products that were “gold standard” in the industry. The valves and associated parts were flush with manufacturing defects, which caused the valves to leak. Because of the potentially dangerous nature of the liquids flowing through Kinder Morgan’s terminal pipelines, the leaking posed serious business disruption and customer-relations issues. Kinder Morgan spent millions of dollars addressing the situation. When negotiations between the parties came to a stalemate, EMH stepped in and filed suit against the manufacturer and distributor, alleging claims for breach of contract, breach of warranty and negligent misrepresentation. Although the product liability and damages issues in the case were highly complex, EMH successfully convinced the defendants of Kinder Morgan’s likelihood of success at trial, thereby securing a multimillion-dollar settlement for Kinder Morgan and avoiding additional costly and lengthy litigation.