The Delaware Court of Chancery dismissed the final claim in a multi-million dollar breach of contract suit brought by GRT, Inc. against Marathon Oil Corporation and a subsidiary, Marathon GTF Technology, Ltd. The suit concerned a joint commercial relationship in the area of conversion of methane gas to liquid fuel.
GRT had sued for breach of two different contracts, a Securities Purchase Agreement (SPA) and a Cooperative Development Agreement (CDA). The SPA claim alleged that a multi-million dollar experimental “Demonstration Facility” did not meet certain representations and warranties that were made about it by Marathon Oil and Marathon GTF. The CDA claim alleged that Marathon GTF had denied GRT certain access rights to this facility.
The Chancery Court dismissed the SPA claim last year, finding that it was time-barred by a contractual statute of limitations.
On Thursday (June 21, 2012), the Court dismissed the remaining CDA claim, finding that it was based on Marathon’s discontinuation of operations at the Demonstration Facility and that the contract did not obligate Marathon to operate the facility. The court further determined that extrinsic evidence showed that GRT had sought in negotiations, but did not receive, a commitment by Marathon to operate the facility.
