NEW YORK M&K Chemical
Engineering Consultants Inc. filed a motion to dismiss a
lawsuit from Molycorp Minerals LLC last week, claiming that
Molycorp broke the terms of its contract with M&K by
withholding payment from the engineering company that was
helping to develop Molycorps flagship production
Granite City, Ill.-based
M&Ks motion to dismiss also alleges that Molycorp
filed its lawsuit fewer than 30 days after mediation between
the two companies, a breach of the companies
"Molycorp has failed to allege,
and cannot allege, that it has performed the contract on its
part," Granite City, Ill.-based M&K said in the motion.
Colo.based Molycorp filed the original lawsuit against
M&K on Oct. 31, claiming that M&K broke its contract to
expand Molycorps "Project Phoenix" rare earths facility
by providing incomplete specifications, designing
non-functioning plans and drafting unsafe designs (
amm.com, Nov. 6).
M&K disputed the negligence
charges in its motion to dismiss, arguing that it is not liable
for damages unless its designs could have caused physical
injury or "significant" damage to property.
Attorneys for M&K could not
be reached for comment.
The parties are scheduled to
meet to discuss the claims and a possible resolution on Jan. 4
Project Phoenix will produce
heavy rare earth concentrates, including dysprosium, terbium
and europium and process them for use in hybrid electric
vehicles, wind turbines and electronics.