Natural Gas Company Embroiled In Business Contract Dispute

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Thursday, December 17, 2015.

Companies, government agencies and individuals are all connected in one way or another through a local economy. In business, one decision that a company makes can potentially affect various aspects of a local economy in California. This turned out to be the case after one natural gas company decided to impose a moratorium on expansion of the amount of natural gas it would provide. The company is now in the middle of a business contract dispute as a result of this decision.

The lawsuit was filed by Tofino Associates LLC against the natural gas company. The plaintiff claims that it had formed a contract with the gas company in 2004. In the contract, the gas company agreed to provide natural gas for 69 homes in a specific development operated by Tofino. However, it turns out that the gas company only provided natural gas for 35 homes following its self-imposed moratorium.

The plaintiff company claims to have spent over $260,000 in order to work out an arrangement with the natural gas company to provide natural gas to the homes without imposing any additional costs to homeowners, unless the homes were located more than 125 feet away from the road. The plaintiff claims that the defendant's actions caused the value of the homes to decline and also forced Tofino to sell the homes at lower prices. The lawsuit is asking the court to award the plaintiff punitive damages, compensatory damages and legal fees.

However, just like in any other business contract dispute in California, a judge will ultimately decide the outcome of the lawsuit. Both sides will be able to present their versions of what happened. The strength of the evidence and testimony supporting each side's legal arguments will determine which side will prevail in this legal dispute.

Source:, "Developer of subdivision in Amherst sues Berkshire Gas, alleging breach of contract over moratorium", Scott Merzbach, December 10, 2015

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