Biodiesel and Ethanol

City of Lincoln Settles Bad Diesel Shipment Lawsuit

January 06, 2011

LINCOLN, NE - The City of Lincoln agreed to settle a lawsuit for $40,000 over a shipment of bad soy diesel fuel believed to have damaged 25 City transit buses, according to the Lincoln Journal Star.

The City's mass transit carrier StarTran began having problems with its buses not starting after receiving 21,000 gallons of soy diesel fuel in 2008. Testing confirmed it was caused by "injector and fuel pump clogging from the fuel," according to the suit.

The suit alleged the supplier was negligent for providing the City with bad diesel, which led to the need to replace fuel pumps and injectors that cost nearly $100,000, plus lab testing, the newspaper reported.

The City originally sought $101,000, but settled because the cost would be less expensive than going to trial, according to the Journal Star.

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