Natural Gas Pipeline Installation

Natural Gas Pipeline Installation
Utility Line Services v. PVR Marcellus Gas Gathering, LLC

Penn Virginia Resource Partners (PVR) – Marcellus Gas Gathering, LLC contracted with Utility Line Services (ULS) to install portions of a natural gas pipeline in Lycoming County, Pennsylvania. ULS submitted a claim for $17.7 million in unpaid invoices and $7.8 million in excess costs and lost profits due to wrongful termination.

Cotton & Company was engaged by ULS to evaluate the validity of the “unresolved billing issues” identified by PVR and to determine whether unpaid invoice amounts were for valid contract costs incurred in the normal course of operations under ULS’s contract with PVR. In order to complete these objectives, Cotton & Company obtained and reviewed PVR’s analysis of ULS invoices, reconciled PVR billing adjustments to ULS invoices, and verified ULS invoice amounts against supporting documentation. Cotton & Company also provided deposition testimony, assisted with trial preparation, and provided trial testimony.

Upon completion of trial, a jury found breach of contract, violation of Pennsylvania’s Contractor and Subcontractor Payment Act (CASPA), and wrongful termination of the contract and awarded ULS $24.3 million, as well as CASPA interest and penalties.