Gray Reed Secures Jury Verdict Against Allied Fitting for Supplying Non-Conforming Pipe
HOUSTON -- On April 13, 2022, a Harris County jury awarded nearly $200,000.00 in damages to Gray Reed’s client, 3-J Ryan, Inc. (3-J Ryan), from the defendant Allied Fitting, L.P. (Allied). The jury determined Allied failed to supply 3-J Ryan with piping material sourced from an approved “country of origin” as promised. As a result, the jury concluded Allied breached several warranties under the Uniform Commercial Code, including breach of an express warranty, breach of the implied warranty of merchantability, and breach of the implied warranty of fitness for particular purpose.
3-J Ryan is a Houston-based fabrication and construction company. In 2018, 3-J Ryan was awarded a contract to perform pipe fabrication work at Formosa Plastic’s facility in Point Comfort, Texas. Formosa required the pipe used on the project originate from certain approved “countries of origin.” Allied agreed to supply the pipe directly to 3-J Ryan pursuant to Formosa’s specifications. Towards the end of the project, Allied supplied 3-J Ryan with non-conforming pipe. Consequently, 3-J Ryan incurred damages to re-do its work and replace the non-conforming pipe with conforming pipe. Allied refused to pay 3-J Ryan any costs associated with the remediation work.
At trial, 3-J Ryan argued it relied on Allied to send pipe from approved countries of origin per the specifications Allied received. Allied argued 3-J Ryan should have discovered Allied’s own mistake, and contended 3-J Ryan’s damages were the result of 3-J Ryan’s “stupidity.” The jury disagreed, awarding 3-J Ryan damages and finding Allied breached express and implied warranties for its failure to supply conforming pipe. Several 3-J Ryan employees and representatives testified at trial. Allied’s corporate representative (Troy Gorrell) was present at trial, but did not take the stand.
3-J Ryan was represented by Gray Reed attorneys Andy Landry, Tyler McGuire, and Julia Edwards. Allied was represented by Mark Levine and Megan Brannigan of Weycer, Kaplan, Pulaski & Zuber, P.C.
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A full-service Texas law firm with offices in Dallas, Houston and Waco, Gray Reed provides legal services to companies ranging from start-up to Fortune 100 as well as high net worth individuals. Gray Reed attorneys assist clients with a myriad of legal issues including commercial litigation, mergers and acquisitions, private equity, oil and gas, tax planning and litigation, real estate, construction, healthcare, trusts and estates, employment law, family law, intellectual property and bankruptcy. For more information, visit www.grayreed.com