Clow Valve recently filed a civil conspiracy and fraud lawsuit against Chevron USA, Diamond Oil Company and Oskaloosa Gas and Oil. Attorneys representing Clow asked for punitive damages while the defense attorneys asked for a direct verdict from the judge. Neither request was granted as the jury returned to listen to the first witness’ statement this week.
Clow is seeking punitive damages for four misrepresentations by Chevron on whose advice they discontinued the use of a Mystik food- grade grease and began using Chevron food machinery (FM) extreme pressure grease which is aso a food- grade grease. Later, Dr. Carl Ward who invented Chevron FM grease stated that food grade greases did not perform as well as conventional greases in terms of corrosion. According to Clow’s lawyers, this created a very dangerous situation for the company owing to which their being awarded punitive damages was warranted.
Chevron’s attorney conceded that if the company had prior knowledge that their grease caused corrosion and still went to Clow with it, then that would warrant punitive damages.
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