Successful Appeal In Contract Matter

Joseph R. Falasco was successful in securing the reversal of a significant judgment against his client in a contract matter.  The firm represents El Dorado Ammonia (“EDA”), El Dorado Chemical Co. (“EDC”), and their parent company, LSB Industries (“LSB”)  (collectively “LSB”) in a dispute arising from the dismantling and relocation of an ammonia plant in Louisiana and its reassembly, engineering, and construction in El Dorado, Arkansas.  LSB contracted with Leidos to perform the work and act as the general contractor on the project.  Leidos, in turn, contracted with multiple specialized subcontractors to complete the work.  Global Industrial, the primary piping subcontractor, brought suit against Leidos and LSB seeking to recover approximately $10 million in unpaid invoices.  LSB and Leidos brought cross-claims against each other.  Global’s claims were bifurcated and tried in a separate suit in 2018.  After that trial, the Circuit Court entered a total judgment for about $10 million to foreclose a lien on LSB’s real property connected with its Arkansas chemical plant.  LSB appealed, and, on October 18, 2023, the Arkansas Court of Appeals reversed the judgment.  Global’s petition for rehearing was denied by the Arkansas Supreme Court on January 25, 2024.