Crescent Terminals, LLC v. Saybolt, LP

CourtCourt of Appeals of Texas
DecidedFebruary 8, 2018
Docket09-16-00386-CV
StatusPublished

This text of Crescent Terminals, LLC v. Saybolt, LP (Crescent Terminals, LLC v. Saybolt, LP) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crescent Terminals, LLC v. Saybolt, LP, (Tex. Ct. App. 2018).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

___________________

NO. 09-16-00386-CV ___________________

CRESCENT TERMINALS, LLC Appellant

V.

SAYBOLT, LP, Appellee

__________________________________________________________________

On Appeal from the 136th District Court Jefferson County, Texas Trial Cause No. D-194,189 __________________________________________________________________

MEMORANDUM OPINION

Crescent Terminals, LLC appeals from a summary judgment ruling in favor

of Saybolt, LP, who was employed to act as Crescent’s and ExxonMobil Oil

Corporation’s (Exxon) mutually agreed inspector to evaluate the quality of a cargo

of crude oil that Crescent sold to Exxon. Crescent raises three issues in its appeal of

the trial court’s take-nothing judgment, arguing the summary judgment evidence

1 reveals the existence of fact issues on the breach of fiduciary duty, tortious

interference with contract, and business disparagement claims that it filed against

Saybolt. We affirm the trial court’s judgment.

Background

In June 2012, Crescent agreed to sell 100,000 barrels of crude oil to Exxon.

The transaction was based on a written agreement, contract number 1470, which

includes terms that specify the quality of the cargo. One of the terms of the contract

required that Crescent’s cargo of crude oil “be marketable and acceptable in the

applicable common or segregated stream of the carriers involved but not to exceed

1% S[ediment] & W[ater].” The contract also required that Crescent deliver the

cargo to a storage tank facility operated by Sunoco Partners Marketing & Terminals,

L.P. (Sunoco) in Nederland, Texas. Crescent filed suit against Exxon and later sued

Saybolt when Saybolt reported that the sediment and water content of the cargo that

Crescent delivered in discharging its duties under contract 1470 exceeded one

percent.

The summary judgment evidence reflects that Crescent discharged the cargo

from barges into storage tanks that Exxon leased from Sunoco. Several other

provisions that are in contract number 1470 are relevant to the trial court’s resolution

of Saybolt’s motion. For instance, the contract required the cargo that Crescent

2 delivered to Exxon to be inspected for quantity and quality by a “mutually agreed

independent inspector, with costs to be shared equally.” The contract also provides

that the inspection “shall be as specified by [Exxon], but not to exceed the quality

warranties contained in this contract and shall be based on composite vessel sample

or automatic inline sampler prior to discharge, unless otherwise mutually agreed in

writing.”

Saybolt is the company that Crescent and Exxon chose to use as their mutually

agreed inspector with respect to contract number 1470. When Saybolt performed its

duties to inspect Crescent’s cargo, its employees performed tests to determine the

sediment and water content on samples that its employees obtained from the barge

as it was being discharged and from samples that Sunoco’s representatives gathered

from Sunoco’s automatic inline sampler during Crescent’s discharge of its cargo.

The tests on the samples taken from the two sources were significantly different, as

the samples tested from the automatic inline sampler showed that Crescent’s cargo

failed to comply with the less than one percent sediment and water requirement that

is in contract number 1470.1 Had Saybolt based its final discharge report regarding

1 Saybolt’s final discharge report reflects that Crescent’s cargo, delivered to Exxon under contract number 1470, contained approximately fourteen percent sediment and water, by volume.

3 Crescent’s cargo on the tests Saybolt performed on the composite vessel samples,

its report would have indicated that the cargo contained less than one percent water

and sediment, by volume. Viewed in the light most favorable to Crescent, the

summary judgment evidence established that Saybolt based its final discharge report

on the tests that it performed on the samples that came from Sunoco’s automatic

inline sampler because Exxon directed Saybolt’s manager to issue its report based

on its testing of those samples.

In 2013, Crescent sued Exxon because Exxon had based the payment that it

made to Crescent for the cargo delivered pursuant to contract number 1470 on

Saybolt’s report showing that the cargo contained more than one percent sediment

and water, by volume.2 In 2014, Crescent added Saybolt as another party to its suit.

In Crescent’s second amended petition (the live pleading before the trial court at the

time that it ruled on Saybolt’s motion) Crescent alleged that Saybolt owed it a

fiduciary duty regarding the numbers it chose to report to Exxon regarding the water

and sediment in the cargo it sold to Exxon, and that it had breached its duties to

Crescent by providing Exxon with a final discharge report that Saybolt based on the

2 Before the trial court ruled on Saybolt’s motion for summary judgment, Crescent nonsuited its claims against Exxon. Therefore, Exxon was not a party to the case when the trial court ruled on Saybolt’s motion, and it is also not a party to the appeal. 4 tests that it had performed on the samples taken from Sunoco’s automatic inline

sampler. According to Crescent, Saybolt’s report should have been based on the

composite vessel samples that its employees took during the discharge of the cargo,

or Saybolt should have issued a report stating that no final report could be issued

given the discrepancies in the tests that it did on all of the samples that it tested. In

addition to its breach of fiduciary duty claim, Crescent asserted a claim against

Saybolt for tortious interference with its relationship with Exxon, for falsely

disparaging Crescent’s business practices, for fraud, and for conspiring with Exxon

to damage Crescent’s business.

On appeal, Crescent filed a brief that challenges the rulings the trial court

made on Crescent’s breach of fiduciary duty, tortious interference, and business

disparagement claims. Crescent does not challenge the trial court’s rulings on

Crescent’s fraud and civil conspiracy claims.

Saybolt challenged the claims that are the subject of Crescent’s appeal by

filing a combined traditional and no-evidence motion for summary judgment. In

response to Saybolt’s combined motion, Crescent filed a response, and it attached

several exhibits for the trial court to consider in evaluating Saybolt’s request. The

exhibits that Crescent filed, and that the trial court considered, are comprised of three

5 affidavits and one unsworn declaration;3 excerpts from three depositions taken by

the parties in the discovery phase of the case;4 a copy of an e-mail that Brian Goff,

a Saybolt employee, sent to David Sifuentes and Alyssa Fritz, Exxon employees,

which explains that Saybolt’s tests on the composite vessel samples showed that the

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