Hicks Thomas LLP Wins $36 Million for Client in Contract Row with BP
Hicks Thomas LLP won $36 million in arbitration on behalf of Frontier Drilling
for a contract dispute with BP Exploration & Production Inc. According
to Hicks Thomas LLP, BP agreed to charter a vessel with Frontier but dropped
its end of the deal.
On behalf of Frontier, Hicks Thomas LLP asked a federal court to confirm
the arbitration agreement, which included an amended award of more than
$111,000 in compensation for arbitrators’ fees and more than $36
million in damages.
Frontier said, “Frontier knows of no valid grounds to vacate, modify
or correct the arbitrators’ award. Therefore, pursuant to the [Federal
Arbitration Act], and the parties’ agreement, Frontier requests
that this court issue an order confirming the arbitrators’ amended
partial final award.”
According to a 2010 contract with Frontier, BP agreed to charter a vessel
for no less than 100 days at a $30.4 million rate. The contract included
an additional fee of nearly $14 million for additional expenses. These
expenses included moving the vessel to the Gulf of Mexico from Brazil.
After paying the mobilization fee, BP tried to back out of the contract.
According to BP, Frontier provided a vessel that could not “lawfully”
complete the task described in the contract. Claiming breach of contract,
BP sought more than $19 million in arbitration. Frontier, on the other
hand, claimed BP paid only $9 million for mobilization.
Through arbitration, Hicks Thomas LLP won an excess of $36 million. Frontier
is represented by J. Stephen Barrick, Gregg C. Laswell, Matthew C. Rawlinson,
and Allen H. Rustay, of Hicks Thomas LLP.
The case is Frontier Drilling USA Inc. v. BP Exploration & Production,
lnc., 4:12-cv-03203, in the U.S. District Court for the Southern District
of Texas. Read more about this case on
Law360.com (subscription required).