Chapter 5: Commercial Disputes

Top Disputes & Investigations

Commercial disputes are likely to be significantly affected by COVID-19 in the coming years. Already, there has been a surge in new filings stemming from COVID-19.

FTI Consulting’s Dispute Advisory Services practice is built around authoritative, experienced and independent functional and industry experts who analyze complex situations and formulate concise and persuasive opinions and conclusions. In this section of our 2020 Insights: Top Disputes & Investigations, we highlight our work helping clients resolve disputes on major Commercial Disputes projects.

LPG Distributor v. Multinational Refiner

A multinational hydrocarbons refiner brought in FTI Consulting to assist in a dispute involving its Liquified Petroleum Gas (LPG) production supply agreement with an LPG distributor. The LPG distributor claimed damages arising from the fact that it did not receive the monthly base quantity of LPG products, which could be solely LPG or a combination of LPG and either butane and/or propane.

FTI Consulting reviewed refinery optimization with regard to existing hardware configuration and existing operating conditions. We examined existing refinery configuration, logistics, product grades and the overall refining process, including production optimization of fuel versus LPG. FTI Consulting further analyzed crude selection, blending and commercial optimization with regard to crude quality (API, sulfur, TAN, etc.) and yields.

Of the two claims for damages made, one was dismissed in favor of our client and the other resulted in minimal damages awarded.

Calculating Damages in a Real Estate Breach-of-Contract Suit

Counsel for a major luxury home developer needed FTI Consulting’s assistance with damages analysis and expert testimony in connection with a breach of contract dispute. The developer had acquired property in Orange County, California, including an agreement with the Defendant, an oil field operator, to plug and abandon the wells that it was operating once the Plaintiff was ready to develop the parcel. When the developer was ready to build homes, the Defendant failed to cease oil operations per the agreement, which resulted in a significant project delay.