Published On: Fri, Jan 25th, 2013

SCALTECH sues Isla in New York for $2.1 million for nonpayment of services and damages

NEW YORK, WILLEMSTAD – Scaltech International LLC of Houston, Texas built in 1997 the Solid Waste Mangement System for Refineria Isla (Curacao) BV and operated it for the first 5 years after commissioning. One of the main purposes of the plant is to prevent for oil to escape into the Schottegaat. From 2003 until 2011 Waste Oil Management, a company owned by family members of Gensley Capella, the former Managing Director of Curoil, operated the Solid Waste Management System for Isla.

As a result of lack of proper operation by WOM, an incident occurred in May of 2010, where oil escaped from the refinery and migrated from the Schottegaat through the harbor waters onto the ocean and contaminated the beaches of the Marriott and other tourist establishments. Also the hull of a cruise ship got smeared with oil and Refineria Isla ended up paying a significant amount of money to the cruise line. The event also caused hundreds of tourists to cancel their vacation to Curacao and others to leave prematurely.

In view of WOM’s improper operation, Isla replaced WOM with Scaltech to overhaul and operate the Solid Waste Management System. Isla failed to pay Scaltech for a significant amount of services rendered to Isla without basis and caused Scaltech significant damages. Scaltech attempted to collects from Isla the amounts due for 7 months with the view of an amicable resolution. Isla attempted to bully small privately owned Scaltech and no resolution was found.

As a result Scaltech has now filed arbitration proceedings against Isla in New York claiming payment of invoices and reimbursement of damages in the amount of about $2.1 million.

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