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Breach of contract suit filed by oil company drilling in Florida

On Behalf of | Jul 4, 2013 | Business Litigation |

Claims of a double-cross have led an oil company to file a federal lawsuit, according to business reports. The out-of-state company alleges a consulting firm hired to secure more drilling leases committed a breach of contract. The company has been drilling off the coast of Florida for the last six years.

The company has alleged that the consulting firm did not turn over the leaseholds they had acquired on behalf of the oil company. Instead, the consulting firm kept the leases for themselves or provided them to the oil company’s competition, the case states. The lawsuit is asking for a jury trial and is seeking in excess of $75,000 in damages.

This issue is of particular importance here in Florida because of escalating interest in offshore oil assets over the last several years. The specifics of the contract between the two entities clearly outlined a conflict of interest stipulation that prohibited the consulting firm from working with direct competition. The discovery that the firm was allegedly working with other interests could constitute the breach of contract the case accuses.

When dealing with valuable assets, contracts are vital to ensure appropriate and equitable distribution of wealth. Any Florida business that feels a breach of contract has been committed by another company or individual has a right under business law to seek redress before a civil court. It may be beneficial to such a case for additional support to be sought in determining exactly how the contract was breached according to the legal documentation.

Source: news-press.com, “Oil company drilling in Southwest Florida claims it was grifted,” Mary Wozniak, June 23, 2013