Case Studies: Commercial Damages

Kenrich Personnel Analyzed The Impact Of A Breached Supplier Agreement In The Synthetic Fuel Industry

Kenrich personnel analyzed the impact of a breached supplier agreement. In this matter, the defendant had allegedly failed to deliver coal within contract-specified boundaries that would be used to derive a specialized synthetic fuel. Failing to obtain the coal to the contractual specifications, the plaintiff incurred significant damages related to the loss of value from the production of the synthetic fuel, which was primarily driven by favorable federal tax treatment provided for its production. Our work included:

  • Performing a detailed analysis of the operations of the synthetic fuel production facilities and process, as well as the detailed tax-related impacts.
  • Evaluating the existing and projected marketplace for the synthetic fuel produced in the proprietary process employed.
  • Working extensively with client personnel, we prepared a detailed damages analysis assuming that specification-compliant coal had been delivered. The analysis incorporated expected synthetic fuel revenue, production constraints and relevant cost factors.