Chemical Experts Settle Dispute Between Water Park And Chlorine Supplier

ByJohn Lomicky

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Updated onApril 9, 2019

This case involves a dispute over a chlorine supply contract. The plaintiff was a large indoor waterpark in the northeast that was supplied chlorine by the defendant major chemical manufacturer. It was alleged that the defendant imprudently employed a cost-plus contract. An expert in chlorine manufacturing contracts was sought to opine on the dispute.

Question(s) For Expert Witness

1. Please describe your experience in buying/selling chlorine.

2. Are you familiar with cost-plus terms in the context of a chlorine supply contract?

Expert Witness Response E-058630

inline imageI have been involved in chlorine for many years. I worked in the chlor-alkali chemical division at a global materials supplier from 1980 until 2013. This division had a chlorine business very much like those of the major chemical companies. My primary focus was on caustic products, but chlorine and caustics are very closely tied together so I was heavily involved in chlorine sales. Cost-plus deals on chlorine are very reasonable, particularly in specific instances. For a case in which a supplier invests lots of money, it is prudent to use a cost-plus structure that guarantees a return on the investment. The idea of a cost-plus sales agreement when a company has invested considerable assets to supply another company is not at all uncommon. When I was working with the global materials supplier, we made contracts with cost-plus elements and also a component linked to the market. We also made multiple cost-plus proposals, including a recent dealing at another chemical manufacturer where we proposed to build assets for a company and charge with a cost-plus arrangement.

About the author

John Lomicky

John Lomicky

John Lomicky is a J.D. candidate at FSU Law with a multidisciplinary background. He earned his Bachelor's degree in Neurobiology and Near Eastern Studies from Georgetown University and has graduate degrees in International Business and Eurasian Studies. John's professional experience includes working in private equity as an Associate at Kingfish Group and in legal business development and research roles at the Expert Institute. His expertise spans managing sales teams, company expansion, and providing consultative services to legal practices in various fields.

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