CUC settles pipeline project designer’s complaint

The Commonwealth Utilities Corp. has settled the complaint for non-payment of services filed by Vanderpool Pipeline Engineers Inc., a company that served as the pipeline designer and third party construction manager for the CUC pipeline project.

CUC legal counsel James S. Sirok and Vanderpool Pipeline counsel Robert J. O’Connor informed the U.S. District Court for the NMI on Monday about their settlement.

Because of the settlement, Sirok and O’Connor filed a stipulation, requesting the District Court to dismiss with prejudice CUC’s court action.

Dismissal with prejudice means CUC cannot re-open the case anymore.

The parties did not indicate the settlement amount.

Sirok and O’Connor said their stipulation is based on the settlement and payment of all claims of Vanderpool Pipeline against CUC.

The lawyers said the parties agreed with the dismissal of the arbitration proceedings brought by Vanderpool Pipeline against CUC within the American Arbitration Association in Hawaii.

In the federal court action, CUC asked the court to stop the arbitration case filed by Vanderpool Pipeline against CUC before the American Arbitration Association.

Vanderpool Pipeline sought a $527,000 payment from CUC over its stalled oil pipeline project.

Sirok requested the court to declare that there is no contractual obligation for CUC to arbitrate disputes with Vanderpool.

Sirok asserted that CUC never agreed or consented to arbitration.

Sirok said Vanderpool inserted an arbitration clause into a proposal for additional work to be added to the original contract via two change orders.

CUC’s contract with Vanderpool expired on Dec. 31, 2014, and that to date, the pipeline project that CUC sought Vanderpool’s assistance to build has not been completed.

Vanderpool filed the arbitration case against CUC last Feb. 14.

In its opposition, Vanderpool Pipeline asked the court to deny CUC’s request to stop the arbitration.

Vanderpool Pipeline counsel O’Connor said CUC has no reasonable or legitimate prospect of prevailing on

the merits in this case, as the facts clearly show the utilities agency to have agreed to arbitration with Vanderpool in the event of a dispute between them.

O’Connor said CUC is bound by contract to arbitrate.