NEW YORK Kurt
Orban Partners LLC filed a lawsuit against Panyu Chu Kong Steel
Pipe Co. Ltd. (PCK), claiming the Chinese pipe maker knowingly
delivered material that didnt adhere to American
Petroleum Institute (API) specifications and covered up the
faults with an application of heavy lacquer.
"Defendant knew or
reasonably should have known that the product it intended to
ship to the plaintiff did not comply with the (API) 5LB
standards and specifications and applied the heavy lacquer to
cover up the defects of the product," lawyers from San
Diego-based Solomon, Ward, Seidenwurm & Smith LLP wrote in
the complaint on behalf of the Burlingame, Calif.-based steel
Neither PCK nor Kurt
Orban returned requests for comment.
PCK confirmed prior to shipment that the product would be
compliant with the standards, stenciled the material as such
and supplied a test certificate confirming the material adhered
to the specifications set out in the contract.
However, the pipe was
eventually found to be pitted, something that wasnt
initially discovered due to the heavy lacquer that was
"As a result of
defendants actions, the plaintiff has incurred monetary
damages and significant impact to its reputation in the steel
industry," the lawyers wrote in the filing, with the cost of
removing the faulty pipes, purchasing new pipes and
reinstalling the pipes by the end-user eventually charged to
The trading company is
asking for compensation "according to proof, but no less than
$424,378.61," according to the filing.