Celanese Wins Key Victory In Supply Dispute

September 12, 2012 | Client Results

On Aug. 10, 2012, Celanese Corporation won a significant victory in a lawsuit brought by Southern Chemical Corporation over a methanol supply contract important to Celanese’s operations in the United States and Mexico.

Southern Chemical had sued Celanese over the contract, alleging fraudulent inducement, tortious interference with contract, unjust enrichment, and breach of contract. Southern Chemical also sought early termination of the parties’ 10-year agreement.

At the conclusion of a four-week trial, a Harris County jury returned a verdict in favor of Celanese. The jury found that Celanese did not violate the terms of the contract and that the agreement should continue until its expiration. The jury also awarded Celanese $558,198 on its counterclaim for breach of the duty of good faith and fair dealing.

“We are pleased with the jury’s verdict and expect Southern to continue to supply methanol under the terms of our contract,” Gjon N. Nivica, Jr., senior vice president, general counsel and corporate secretary for Celanese, said in a statement.

McDermott Will & Emery partner Lazar Raynal and Jackson Walker partner Chip Babcock served as lead counsel for Celanese. The Jackson Walker trial team also included attorneys David Moran and Richard Howell, with support from the firm’s Technology and Litigation Support group.

In This Story

Charles L. Babcock
Partner, Houston

Richard A. Howell
Partner, Houston

David T. Moran
Partner, Dallas