Jury rules against P66 in trade secret case

Market: Biofuels, Crude oil, Oil products
17/10/24

A California jury says US independent refiner Phillips 66 must pay $604.9mn in damages for allegedly stealing trade secrets related to the state's biofuels market.

The jury issued its verdict on 16 October, siding with west coast fuel retailer Propel Fuels more than two years after it filed suit in the Superior Court of California.

Propel sought $1bn in damages, alleging that Phillips 66's renewables business in California was developed from trade secrets the refiner gained while conducting due diligence on for a possible acquisition of the fuel retailer in 2017 and 2018.

Propel said it was "... actively building a new integrated renewable fuels business for Phillips 66 when Phillips 66 abruptly and without explanation terminated the deal on August 24, 2018."

Shortly after terminating the deal, the refiner told California regulators it would begin selling E85 fuel in the state and launched retail sales of renewable diesel (RD) weeks later, Propel says. "Phillips 66 rapidly expanded its California renewables business using Propel's data and market insights," according to Propel.

Phillips 66 denied any wrongdoing and said it is evaluating its legal options following the verdict. A final judgment in the case has not been entered and post-trial motions are pending before the court, Phillips 66 said.

By Brett Holmes

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16/10/24

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16/10/24

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