News

February 27, 2020

Burns Charest LLP Files Suit in Colorado Against Black Hills Corporation to Recover Damages from Improperly Handled Costa Rican Oil and Gas Concessions

Burns Charest and Astrella Law, P.C. are representing GT Resources LLC in litigation filed in Denver County District Court against Black Hills Corporation (“BHC”) and two of its subsidiaries to recover damages caused by their breach of, and interference with, a contract relating to a concession over 2.3 million acres of potential oil and gas reserves in Costa Rica.

According to the complaint, GT Resources obtained rights, memorialized in a letter agreement, related to onshore hydrocarbon concessions in Costa Rica but BHC and its subsidiaries failed to fulfill their obligations to GT Resources through coercion and interference of multiple contractual obligations to GT Resources and its principal, George Mallon. When Mallon asserted unrelated contractual rights under a different set of leases in New Mexico, BHC manipulated its subsidiaries to deny Mallon’s rights to the Costa Rica concession by using those rights as leverage in that disagreement. Mallon refused to be coerced and continued to demand his rights. But BHC and its subsidiaries refused to honor those rights and, ultimately, destroyed the ability to secure the rights by abandoning the Costa Rica concession. GT Resources, as the holder of those rights, seeks the protection of the Court to recover the lost value of the Costa Rica concession.

“These companies combined to deny a valuable right to the client,” said counsel for the plaintiff, Daniel H. Charest. “We intend to enforce these rights and obtain that value in Court. And we look forward to presenting these facts to a jury.”

Chris Cormier added, “George Mallon earned valuable rights from the hard work he put into creating a publicly traded company, which Black Hills Corporation later acquired. As a result of the wrongful conduct of Black Hills Corporation and its relevant subsidiaries, the considerable value associated with Mr. Mallon’s rights has been destroyed. We look forward to representing Mr. Mallon in this matter and holding the defendants accountable.”

A copy of the complaint can be accessed HERE.