Judge Bruce E. Priddy, from the 116th Civil District Court, has reversed an earlier jury verdict and ruled that Dallas-based TXU Corp. is not entitled to any damages in a contract dispute with wind farm operator FPL Energy, according to Lynn Tillotson & Pinker, a Dallas-based law firm that represented FPL.
The dispute centered on claims that Florida-based FPL Energy had not supplied levels of energy from its three wind farms – Indian Mesa and Pecos I and Pecos II in west Texas – as agreed upon in a contract. The wind farms counter-claimed, 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.
The contract dispute began in 2004, and the lawsuit originally sought $46 million in damages and interest.
In his ruling, Priddy agreed with arguments presented by FPL Energy's lead counsel, Mike Lynn, who 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.