Fuel equipment supplier refuses to comply with confidential settlement agreement, gas company claims in lawsuit

By Noddy A. Fernandez | Feb 5, 2019

CHARLESTON — A natural gas company is suing a fuel equipment supplier, citing alleged breach of contract and fraud.

21st Century Natural Fuels LLC filed a complaint in Kanawha Circuit Court against Industrial Fuel Systems LLC alleging that it breached a confidential settlement agreement by refusing to provide required documents and tender payment due under the agreement.

According to the complaint, in March 2013, 21st Century and the defendant agreed under a confidential settlement agreement whereby IFS agreed to provide compensation to the plaintiff, and in return 21st Century agreed to a noncompete agreement and exclusive FIT kit distributorship. 

The plaintiff claims that the defendant sought to evade its obligation under the CSA by claiming that 21st Century had been marketing the FIT kit at a trade show; however, IFS knew this was not true and made the claim in an effort to avoid payment as it was undercapitalized and knew that it would be unable to pay the considerations when they were due. As a result, the plaintiff has been damaged to the extent that it has lost profits and business opportunities by honoring the noncompete agreement.

The plaintiff holds Industrial Fuel Systems, LLC responsible because it allegedly made false claims regarding the plaintiff’s business to avoid its payment obligations under the CSA, and failed to pay plaintiff the demanded cash required under the CSA.

The plaintiff requests a trial by jury and seeks declaratory judgment, money damages and additional relief the Court deems just and equitable, plus fees, costs and attorneys’ fees. It is represented by Arden J. Curry II of Pauley Curry, PLLC in Charleston.

Kanawha Circuit Court Case number 18-C-1520

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Kanawha Circuit Court Pauley Curry, PLLC

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