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Dallas Judge Reverses Jury Verdict, Awards TXU Nothing in Dispute Over Wind Energy

Posted on: Monday, 14 January 2008, 15:00 CST

DALLAS, Jan. 14 /PRNewswire/ -- In a court battle closely watched by the growing wind energy industry, a Dallas judge has reversed an earlier jury verdict and ruled that Dallas-based TXU Corp. is not entitled to any damages in a contract dispute with major wind farm operator FPL Energy.

The dispute centered on claims that Florida-based FPL Energy had not supplied levels of wind energy from three West Texas wind farms as agreed upon in a contract. The wind farms counterclaimed, alleging that they could not satisfy the contract because TXU intentionally had clogged high-voltage transmission lines, preventing the delivery of electricity produced by FPL Energy's wind turbines.

In June 2007, a jury awarded $8.9 million to TXU. But on Friday, Jan. 11, in a stunning upset, the jury verdict was overturned by 116th Civil District Court Judge Bruce E. Priddy, who ruled that TXU should take nothing in the case.

In his ruling, Judge Priddy agreed with arguments presented by FPL Energy's lead counsel Mike Lynn of Dallas-based Lynn Tillotson & Pinker LLP. In those arguments, Mr. Lynn asserted that TXU suffered no losses because the utility had purchased or produced electricity to compensate for electricity that the wind farms had not supplied. Since TXU had effectively "covered" for any deficiencies in FPL's supply of electricity, the judge ruled that TXU is entitled to nothing under the Uniform Commercial Code.

"The judge correctly looked at the facts of this case and saw that TXU is not entitled to any damages," Mr. Lynn says. "This is an important victory for the wind energy industry. Wind energy is a competitive and promising source of clean and renewable electricity for Texas, and it deserves a level playing field."

The contract dispute began in 2004 when TXU Corp sued FPL Energy, claiming that the company's Indian Mesa and Pecos I and Pecos II wind farms had failed to meet their contracts to supply wind-generated electricity. The lawsuit originally sought $46 million in damages and interest

In its countersuit, FPL Energy said the wind farms were blocked from supplying the electricity as promised in the contract because TXU had intentionally congested the high-voltage transmission lines that deliver electricity from West Texas wind farms to the state's electrical grid.

Lynn Tillotson & Pinker is a nationally recognized trial law firm focusing on complex, "high stakes" litigation where results truly matter. The firm has recovered more than $325 million for clients and defeated at trial claims of more than $800 million in the last five years.

For more information on this case, please contact Mike Androvett at 800-559-4534 or Mike@androvett.com.

Lynn Tillotson & Pinker

CONTACT: Mike Androvett, 1-800-559-4534, Mike@androvett.com, for LynnTillotson & Pinker

Source: PRNewswire

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