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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Citgo Petroleum Corporation, et al. v. McDermott International, Inc, et al. (Damage to Property)

“On August 13, 2003, a proceeding entitled Citgo Petroleum Corporation and PDV Midwest Refinery L.L.C. v. McDermott International, Inc, et al., was filed in the Circuit Court of Cook County, Illinois… for damages in connection with the manufacture and sale by a former B&W division of a pipe fitting facility in 1981 that allegedly caused an August 14, 2001 fire at a refinery in the Chicago, Illinois area, which refinery is owned and operated by the plaintiffs… Plaintiffs now seek damages of approximately $600 million, including claims for damage to property and consequential damages… Under the terms of the settlement, B&W became obligated to pay $7.5 million as directed by the plaintiffs upon the effective date of the plan of reorganization…. In addition, should the plaintiffs be awarded damages in excess of $250 million in these proceedings, B&W will be obligated to pay the damages in excess of $250 million subject to a maximum of $42.5 million.” In November 2006, a jury awarded the plaintiffs $387 million, making McDermott liable for the $42.5 million maximum.

Misconduct Type
Consumer Affairs
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Court Approval - approx.
12/1/2005
Contractors Involved Penalty
Total
McDermott, Inc. $42,500,000
Further Information Released
SEC 10-K (p. 102 of 141) 8/31/2006

Federal Contractor Misconduct Database