Practices | Energy Law

Dispute Resolution and Insurance Claims

As a result of its experience in the permitting of power plants and in drafting of construction, operation, and maintenance agreements, as well as power purchase agreements, the EPG attorneys are frequently retained when disputes relating to these or similar contracts arise. Those claims have involved general construction claims, insurance coverage litigation, breach of warranty claims, and others. The EPG has directed the mediation, arbitration, litigation, and settlement of many disputes for its energy clients, and has developed a reputation for effective “crisis management” when plants fail to meet expectations during start up or early operation. Working closely with an experienced pool of insurance and engineering professionals, the EPG selects the appropriate team for each dispute, bringing to bear a wide range of expertise to resolve the dispute quickly and favorably for its clients.

The following disputes are typical:

  • Litigation on behalf of a general contractor seeking a performance bonus for a hydroelectric plant and defense of related breach of contract and punitive damages claims.
  • Litigation representing a general contractor defending against liquidated damage claims, and claims of breach of design and construction warranties on a peat powered facility. The issues on construction related to heat rate, air cooled condensers, turbine design and vibration control, wood chip handling, control systems, combustor design, and pollution control. The case also involved unique peat harvesting equipment that failed to successfully produce the volume or quality of fuel expected by the plant developer which led to the need to use more expensive wood fuel. This equipment was not designed by the client but figured in the case.
  • Litigation over tax assessments on a sale-leaseback financing arrangement.
  • Litigation over corrosion of metal roofing.
  • Mediation over a proposed increase in tipping fees at a waste-to-energy plant.
  • Litigation against first-party property insurers arising out of property damage and business interruption losses flowing from extensive damage to an off-shore power plant at the time of start-up.

The goal of the EPG is always to find a solution to the client’s problems in a prompt and cost-effective manner. EPG attorneys have been in the forefront in Maine in using alternative dispute resolution techniques to resolve complicated commercial problems, including mediation, mini-trials, and structured settlements, and have carried these flexible and effective tools into other jurisdictions.