PITTSBURGH Sunoco Inc. is suing a Sparrows Point, Md., salvage company for allegedly scrapping oil tanks without paying the company for the metal.
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 $579,742.
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 Oklahoma.
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.
Neither Global Recycling nor Arillotta could be reached for comment.