The Court of Appeals for the Fifth District of Texas at Dallas issued a decision in favor of Locke Lord client, Illinova Corp., – a subsidiary of Dynegy – stating Illinova can recover $16.9 million it voluntarily paid to Ponderosa Pine Energy LLC. The $16.9 million was Illinova’s share of a $125 million arbitration award in Ponderosa’s favor over the sale of a Cleburne, Texas, power plant. The arbitration award was later vacated by the Texas Supreme Court in 2014 when it agreed that one of the three arbitrators had failed to fully disclose the nature and extent of his relationship with Ponderosa’s counsel. The Dallas appellate court also affirmed that Ponderosa and its lawyers were jointly and severally liable to Illinova for pre-judgment and post-judgment interest now totaling more than $2.6 million. The Locke Lord trial team, led by Brad Weber (Dallas), also included Tom Loose and Alex LoCasto (both of Dallas).
Posted July 18, 2016