Exxon Loses in Breach-of-Contract Case

A Superior Court judge has ordered Exxon Corp. to pay $33 million for breach of contract in the construction of an oil treatment facility at Exxon’s Santa Ynez plant in Santa Barbara. Retired Ventura County Superior Court Judge Edwin Osborne, presiding in Santa Barbara, ordered the multimillion-dollar judgment earlier this month, following a four-month jury trial. John Clark, an attorney for Texas-based Enserch Corp., the plaintiff whose subsidiary was hired by Exxon to build the facility, said it was one of the largest judgments ever in this kind of construction case. Enserch sued after Exxon made what one expert testified were thousands of changes to the construction plans but failed to pay for them. Exxon attorney John M. Rochefort said the changes Exxon requested did not significantly affect the project’s cost. Enserch may appeal the judgment, which it considers too low. Exxon may also appeal.