Seeking $29 million in damages, three energy companies recently filed a lawsuit alleging that defendant breached contracts to remediate contamination at dozens of service stations in upstate New York. Blount Energy, Inc. v. Envtl. Risk Solutions, LLC, No. N/A (N.D.N.Y. filed 05/03/10). The complaint alleges that defendant failed to properly oversee a subcontractor who was supposed to remediate petroleum contamination at nearly 50 properties under a contract that assigned the defendant all environmental liabilities for any pre-existing contamination at the properties, which plaintiffs purchased from major oil companies. The seller of the properties placed more than $20 million into an escrow account to cover the remediation.
According to the complaint, defendant “failed to perform or otherwise supervise the remediation of the pre-existing contamination associated with the properties in compliance with the contracts, with environmental law, and with the standards of care and diligence normally practiced by nationally recognized firms performing services of a similar nature.” Plaintiffs allege breach of contract, negligence, breach of duty of care, and breach of fiduciary duty. They seek $7.5 million in compensatory damages and $21.9 million in consequential damages.