Hotel Says BP Reneged on $5 Million Deal

HOUSTON (CN) - A Florida resort hotel says BP reneged on an agreement to pay $5 million for it to release all other claims for the Deepwater Horizon oil spill.

Don Cesar Resort Hotel sued BP Exploration & Production in Harris County Court.

The hotel claims that after a year of negotiations with the Gulf Coast Claims Facility, which acted on behalf of BP, "the GCCF issued a determination letter, containing an offer to settle, in the amount of $5,201,611 in order to fully resolve all claims between the plaintiff and BP."

The letter said BP had 14 days to appeal the determination.

"On September 21, 2011, plaintiff and BP executed a valid and enforceable written contract, with one condition. The contract was not fully enforceable until BP's right to appeal expired on October 4, 2011," the complaint states.

"On October 3, 2011, BP issued a Release and Covenant Not to Sue. On October 12, 2011, plaintiff fully executed the release to the satisfaction of BP."

The hotel says that under "BP's explicit terms of their offer," payment was due 14 days after receipt of the release and covenant not to sue.

However, the hotel says, "(P)ayment has not been issued to date."

It adds: "Plaintiff fully performed its contractual obligations. Plaintiff immediately accepted BP's written offer. Plaintiff received and executed BP's Release and Covenant Not to Sue. The release was returned to BP on October 15, 2011, well after the notice of appeal expired."

The hotel seeks $5,201,611 in damages, plus interest, costs and attorneys fees. It is represented by Anthony Buzbee of Houston.

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