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 trading company.
Neither PCK nor Kurt Orban returned requests for comment.
Guangdong, China-based 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 applied.
"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 Kurt Orban.
The trading company is asking for compensation "according to proof, but no less than $424,378.61," according to the filing.