Judge orders Enterprise Products Partners to pay $535.8M in pipeline dispute
ETP had sued Enterprise and Enbridge Inc. (NYSE: ENB) of Calgary, Alberta, Canada, alleging that they conspired to cut ETP out of a deal to jointly build a pipeline from Cushing, Oklahoma, to the Gulf Coast.
Enterprise said that it had a nonbinding letter of intent with ETP, but they did not execute definitive agreements or obtain board approval.
In March, a jury ruled Enterprise wrongfully dropped ETP from the plans for the project, but it found the companies did not conspire to do so. The jury awarded ETP $319 million in actual damages.
The Chronicle reports State District Judge Emily Tobolowsky of Dallas on July 29 ruled that, in addition to the $319.4 million in damages, Enterprise must pay $150 million in disgorged profits and $66.4 million in pre-judgement interest accrued since late 2011. Additional interest will boost the total to $620.2 million by July 2017.
In March, Enterprise said it would fight the verdict, and experts have said the case could set a precedent for the way energy companies form partnerships and behave publicly.