Castle Energy Announces Settlement of Chevron Litigation.KING OF PRUSSIA King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Pa. -- Castle Energy Corporation(1) (Nasdaq:CECX) (the "Company") announced today that it had settled its long-standing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Chevron (formerly ChevronTexaco) for $5.75 million. Chevron had filed the lawsuit against the Company and two of its inactive subsidiaries in August 2002 seeking indemnification and statutory damages Statutory damages are pre-established damages for cases where calculating a correct sum is deemed difficult. In intellectual property cases (relating to copyright or trademark, for instance), it is often difficult for plaintiffs to determine the exact volume of infringement. and relief arising from environmental damage to the now dismantled Indian Refinery in Lawrenceville, Illinois Lawrenceville is a city in Lawrence County, Illinois, along the Embarras River. The population was 4,745 at the 2000 census. It is the county seat of Lawrence County.GR6 Lawrenceville is located in southeast Illinois, northwest of Vincennes, Indiana. . A subsidiary of the Company operated that refinery for approximately five years. Texaco had operated the refinery approximately 75 years. Mr. Sidney F. Wentz, Chairman, noted that the settlement included a complete release of the Company and indemnification of the Company by Chevron as to any and all environmental claims with respect to the Indian Refinery. Mr. Wentz indicated that the directors of the Company believed that, although the Company had meritorious mer·i·to·ri·ous adj. Deserving reward or praise; having merit. [Middle English, from Latin merit defenses to Chevron's claims, it was in the Company's best interests to settle this litigation given the costs of defending the matter, including the diversion of the Company's management personnel. Mr. Richard E. Staedtler, Chief Executive Officer, indicated that the Company expects to record a one-time charge of approximately $2,700,000 (consisting of a gross charge of $4,200,000, net of $1,500,000 in tax benefits) in the fourth quarter of the Company's fiscal year ending September 30, 2005 as a result of the settlement. The Company had previously recorded a $1,550,000 reserve. Forward-looking statements in this announcement are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, litigation risks, tax risks, risks related to the public market for the Company's stock, as well as general business risks. Please refer to the Company's Securities and Exchange Commission filings for additional information. (1)Castle Energy Corporation is not affiliated with Castle Oil Corporation. |
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