Sunoco Inc. is suing a Sparrows Point, Md., salvage company for
allegedly scrapping oil tanks without paying the company for
Global Recycling &
Demolition LLC and its sole owner, Albert Arillotta of
Swampscott, Mass., are named in a breach-of-contract lawsuit
filed in U.S. District Court in Pennsylvania seeking
The lawsuit says that
Global entered into a contract with Sunoco in September 2012 to
demolish and salvage oil tanks at three Sunoco-owned sites in
Global guaranteed it
could do the salvage work for $180 per ton and procure a
minimum of 3,000 gross tons of ferrous metal worth $350 per
ton, and guaranteed Sunoco a minimum payment of $510,000,
according to the lawsuit.
Global neglected to
pay an agreed initial installment of $135,000 and persuaded
Sunoco to reduce the terms of the contract to a minimum of
3,200 tons at $300 per ton with a minimum payment of $360,000,
the lawsuit alleges, and Global agreed to send five payments of
$72,000 over 30 days and to pay the original minimum of
$510,000 if any payments were missed.
Global started the
project in November. The 20-day job ran 30 days over and Sunoco
alleged the delay caused it to incur costs. The lawsuit claims
that Global earned $342,557 for the scrapped material but made
no payments to Sunoco.
The court documents
say that Sunoco found another company to execute the demolition
work at the other two locations.
Recycling nor Arillotta could be reached for comment.