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LOUISIANA RECORD

Saturday, November 2, 2024

Rozel Operating Co. accuses two firms of fraud in salvage dispute

Barge safety

NEW ORLEANS – A Louisiana firm is suing two other companies in a dispute over salvaging a wrecked barge.

Rozel Operating Co. filed a lawsuit Feb. 29 in U.S. District Court for the Eastern District of Louisiana against Crown Point Holdings LLC and International Metal Recycling LLC, citing fraud and breach of contract.

According to the complaint, on Sept. 3, 2014, Rozel paid Crown Point $150,000 to salvage a barge with a cracked hull, with an additional $900,000 forthcoming if two wingwall sections could be retrieved. The claim states that Crown Point failed to retrieve the second wingwall, and is therefore entitled to only $400,000 as the parties originally agreed for partial recovery.

In the meantime, the suit says Crown Point subcontracted the salvage work to a third firm, IMR, for $250,000. Since Crown Point did not receive the $900,000 it was expecting, IMR has attached a lien to two oil wells Rozel owns until it is paid for its salvage work, the suit states. Rozel also claims Crown Point’s salvage of the first wingwall was only partial.

Rozel seeks to void the IMR lien and to recover the $550,000 it paid Crown Point. It is represented by Lafayette attorneys Cliffe E. Laborde III of Mahtook & Lafleur in Lafayette and Brandon W. Letulier and Cliff A. LaCour of Neunerpate in Lafayette.

U.S. District Court for the Eastern District Case number 2:16-cv-01687

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