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Contracts Keyed to Templin
IT Corp. v. Motco Site Trust Fund
Citation:
903 F. Supp. 1106 (S.D. Tex. 1994)Facts
In 1987, the EPA entered a Consent Decree requiring remediation of the Motco Site, a former chemical waste disposal site. Monsanto, a potentially responsible party, prepared a Request for Proposal (RFP) for the remediation work that included detailed technical data about waste characteristics and quantities at the site. ITC submitted a lump-sum bid of $32,884,000 based on this information. After beginning work, ITC encountered significant delays and in 1990 signed a Settlement Agreement with defendants resolving $8.9 million in claims for $3.1 million. In December 1990, ITC discovered that the actual waste characteristics differed substantially from those represented in the RFP, with less liquid waste and more solid waste than described, affecting ITC’s incineration method. ITC requested an equitable adjustment to the contract price, which defendants refused. ITC suspended performance in December 1991 and filed suit, claiming breach of contract, misrepresentation, and fraud. The jury found in favor of ITC, awarding $52,823,356.53 in actual damages and $28,550,000 in punitive damages.
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