Antero alleged that Veolia fraudulently misrepresented the facility’s capabilities and failed to deliver a “turnkey” system as required under the design-build agreement.
The Colorado Court of Appeals recently issued a significant decision in Veolia Water Technologies, Inc. v. Antero Treatment LLC, 2024 COA 126, clarifying the scope of the economic loss rule and the role of fraudulent misrepresentation in design-build contracts. The case serves as a cautionary tale for both owners and contractors about the importance of transparency and diligence in contractual agreements.
Background of the Dispute
The dispute arose from a contract between Antero Treatment LLC (“Antero”), a subsidiary of Antero Resources Corporation, and Veolia Water Technologies, Inc. (“Veolia”) for the construction of a wastewater treatment facility in Pennsboro, West Virginia. The facility was designed to treat wastewater from hydraulic fracturing (“fracking”) operations by separating solids and crystallizing them into waste salt, which could then be landfilled, leaving water clean enough for reuse or surface discharge.
Mr. McLain may be contacted at mclain@hhmrlaw.com