Court orders Nova Chemicals to pay Dow $1.43B judgment
The Court of the Queen’s Bench in Alberta has ordered a judgment ordering Nova Chemicals to pay Dow damages related to the operation of an ethylene asset
MIDLAND, Mich. – An Alberta court has signed a judgment ordering Nova Chemicals to pay Dow $1.43 billion on October 11, 2019, for damages Dow incurred through 2012 related to the companies’ jointly-owned ethylene asset in Joffre, Alta.
The court, which initially ruled in June 2018, found that Calgary-based Nova Chemicals failed to operate the ethylene asset at full capacity for more than 10 years. Furthermore, Nova, which develops and manufactures chemicals and plastic resins, violated several contractual agreements related to Dow receiving its share of the asset’s ethylene production. These actions resulted in reduced productivity and sales for Dow, notes the company’s press release.
The signed judgment relates to damages Dow incurred through 2012. Dow anticipates receiving an additional judgment for damages owed by Nova for the post-2012 period.
Dow said the ethylene asset is now running at a higher utilization rate and giving Dow more ethylene from an advantaged feedstock position.
The judgment is subject to appeal.