Media Coverage
Source: Law360
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
12.22.16
A federal judge in North Carolina has ruled that Duke Energy Florida Inc. does not have to pay Westinghouse Electric Company a $512 million termination fee the company sought after Duke Energy terminated a contract with it. Instead, the judge ruled that Westinghouse is only entitled to s a significantly smaller $30 million termination fee plus interest.
The dispute related to two contracts between Westinghouse and Duke predecessor Progress Energy Florida. Progress (and two other major power companies) signed an agreement in 2007 promising to financially support Westinghouse’s Nuclear Regulatory Commission application to license its new AP1000 plant design in exchange for an opportunity to be among the first companies to operate such plants. The following year, Progress signed an Engineering Procurement Construction (EPC) agreement with Westinghouse to design and build an AP1000 nuclear power facility in Levy County, Florida.
In 2009, however, the project contract was suspended by Progress after the NRC declined to approve Westinghouse’ application for site preparation approval. When Progress decided to terminate the contract completely in 2013 rather than leaving it in indefinite suspension, Westinghouse sought the $512 million termination fee, of which $482 million was earmarked to cover development costs.
The Pillsbury trial team was led by Washington, DC Litigation partners Jack McKay and Michael McNamara, counsel Laura Lobue and associate John Chamberlain. Washington, DC energy partner Michael Lepre was also an integral part of the team.