Ray Neuer and Lara Price Win Plaintiff's Verdict in Breach of Contract and Fraud Lawsuit

On November 15, 2012, a Harris County jury took less than an hour to render a verdict in favor of Flowserve Corporation in a breach of contract and fraud case against National Oilwell Varco. The Firm’s client, an industrial pump manufacturer, contracted as a first tier subcontractor to supply two large vertical raw water feed pumps to be installed for use by a water authority in Fairfax, Virginia. Attorneys Raymond A. Neuer and Lara M. Price represented the Firm’s client.

As part of its scope of work, Flowserve also agreed to provide two large vertical synchronous motors to drive the raw water feed pumps. The defendant in the lawsuit, a Houston based company, designed and manufactured the motors. The motors supplied by the defendant leaked oil from a lower bearing housing. The motor manufacturer was given approximately fourteen months to correct the problem. Ultimately, the general contractor refused to accept the motors due to the oil leaks, and Flowserve was forced to cover. The motor manufacturer claimed that it fixed the leaks and that the motors were rejected for other reasons.

After nearly three weeks of testimony, the jury quickly found in favor of the Firm’s client and rendered a verdict on two theories of recovery — breach of contract and fraud. The jury awarded the full amount of damages requested, $1.189 million. The parties submitted the attorney’s fees to the Court. The court ultimately awarded attorney’s fees for representation in the trial court in the amount of $637,000.00. On Friday, February 8, 2013, the court entered a judgment in favor of Flowserve, which including prejudgment interest and attorney’s fees on appeal, exceeds $2.0 million.

For more information about this press release, you may reach Mr. Neuer at (713) 951-1027 or Ms. Price at (713) 951-1075 or go the Firm’s website at www.sheehyware.com.

Author: Raymond Neuer
Phone: 713-951-1027
Fax: 713-951-1199