Silogram Lubricants, a New York Corporation with a manufacturing and distribution facility in Bayonne, NJ filed a $25 million breach of contract suit against Everclear of Ohio, Ltd. on March 1, 2012.

Silogram alleges the 10W-30 engine oil it purchased from Everclear for resale to Silogram's customers from late 2010 to early 2012 was defective and improper for use in automobiles. As such, it damaged passenger cars and trucks where it was intended for use and caused damage to Silogram's business and reputation.    

According to the suit, Silogram alleges its customer's oil consumption when using Everclear was extraordinary and that in some cases the oil would entirely disappear from the user's vehicle and engine failures would begin to occur. In addition, Silogram alleges it received complaints that oil being delivered by Everclear and distributed by Silogram was "contaminated with enormous amounts of pea sized pellets or lumps identified as 'jelly beans'."      

The Silogram suit claims they were purchasing the Everclear engine oil at a rate of approximately 1 million gallons a year.

Massage to Blenders:

If you hear about quality concerns, take them seriously. Rather than waiting months or years to respond, get the product tested and, if necessary, recall the product in question.  

Note: The Petroleum Quality Institute of America tested a sample of Everclear (click here for results) in July 2011 and issued a Consumer Alert on the product.