King & Spalding attorneys have successfully prevailed on appeal for client Baystar in a legal dispute against a subsidiary of McDermott International Ltd. The case centered around Baystar’s enforcement of a contractual right to $75.4 million in liquidated damages. The dispute involved two engineering and construction projects worth a combined $2.5 billion, initiated in 2017 with McDermott’s subsidiary, CB&I LLC.
The decision was upheld by the 14th Court of Appeals, with Justice Frances Bourliot stating that Texas law does not offer injunctive relief to prevent payment on a letter of credit for contractual disputes. For further details, you can read more here.