News & Press Coverage
April 14, 2017

Maine Superior Court Justice Denies Wind Power Companies’ Motions to Overturn $13.6 Million Jury Verdict in Favor of Eastern Maine Electric Cooperative

PORTLAND, Maine — Maine Superior Court Justice Michaela Murphy today denied motions filed by First Wind Holdings, LLC, and its four subsidiaries, in response to the recent verdict in favor of the Eastern Maine Electric Cooperative. The Cooperative’s lead trial counsel, Sigmund Schutz, said, “With her decision, Justice Murphy has upheld the jury’s verdict that the defendants had acted in bad faith.”

The Court ruled “the jury could reasonably find that Defendants failed to act honestly and observe reasonable commercial standards of fair dealing in its negotiations with EMEC by continuing to insist that EMEC complete an impossible task . . . .”

In November 2016, a Bangor, Maine jury found that the five wind power companies breached their contractual obligation to negotiate in good faith and returned a $13.6 million verdict in favor of the Cooperative. The verdict was among the largest jury verdicts ever awarded in Maine.

Justice Murphy upheld the damages award of $13,604,400 today, concluding that “the jury could also reasonably find that EMEC had proven its damages to a reasonable certainty. . . . The jury’s award was not excessive.”

The Cooperative, represented by Sig Schutz and Joe Donahue of the law firm Preti Flaherty, LLP, entered into a contract in 2011 with First Wind Holdings, LLC and four of its former subsidiaries to buy a 12.54 mile section of electric transmission line. The wind farms agreed to take transmission service over the line and pay the Cooperative for the service.

The parties also agreed that the wind farms would pay for costs, including repairs and upgrades to the line, which is standard electric utility practice across the country. However, the wind power companies failed to act in good faith and refused to sell the transmission line or pay EMEC as they had agreed.

The Cooperative filed a lawsuit in October 2014 in the Penobscot County (Maine) Superior Court; the lawsuit was later transferred to the Maine Business & Consumer Court.  The unanimous verdict against the defendants, First Wind Holdings, LLC, which is now owned by SunEdison, and the four former subsidiaries, which are now owned by TerraForm Power, Inc. (NASDAQ: TERP), was reached last fall after about two hours of deliberations.  In the months following the verdict, the defendants filed motions with the Maine Superior Court including a motion to determine whether there were grounds for the Court to order a new trial.

“We are extremely pleased with this decision by the Superior Court,” said the Cooperative’s CEO, Scott Hallowell following the Court’s order denying the motions. “The jury got it right. We will vigorously defend the jury’s verdict in any appeal.”

Defendants have 21 days to file an appeal to the Maine Supreme Judicial Court.

Firm Highlights

Event

When to Say Goodbye: Navigating Leave and Terminations

As an HR professional, hiring the right talent, addressing employee needs, and managing terminations are just a few of the most challenging problems that arise. During this year's three-part Employment Breakfast Webinar Series, we'll...

News

Attorney Jeffrey Thaler Named to 2024 Lawdragon Green 500: Leaders in Energy Law

Preti Flaherty’s attorney Jeffrey Thaler has been recognized by  Lawdragon  as one of the top 500 Leaders in Energy Law. This is Jeff’s third time named to this prestigious list since the first publication...

Publication

131st Legislature Second Regular Session Update

Adjournment and Veto Day After a marathon last day of session, members of the Preti Legislative Practice Group were at the State House on April 18 th to witness the Maine State Legislature head...

Publication

Re/Descheduling Marijuana Through Administrative Action

In the article "Re/Descheduling Marijuana Through Administrative Action" published in the Oklahoma Law Review , authors Scott Bloomberg, Alexandra Harriman, and Shane Pennington explore the complex legal framework surrounding the federal scheduling of marijuana...

News

Preti Attorneys File Suit Against Al-Generated Robocalls in the 2024 NH Presidential Primary

Representing the League of Women Voters of New Hampshire, the League of Women Voters of the United States, and individual voters, Preti Flaherty, with co-counsel, filed a federal lawsuit against Steve Kramer, Lingo Telecom...

Publication

Supreme Court Rules Certain Impact Fees Unconstitutional

A recent Supreme Court ruling in  Sheetz v. County of El Dorado  makes it clear that impact fees adopted by a legislative body may work as an unconstitutional taking of property. The Issue: This...

Event

Conducting Success: Tuning Up Your Discipline and Performance Framework

As an HR professional, hiring the right talent, addressing employee needs, and managing terminations are just a few of the most challenging problems that arise. During this year's three-part Employment Breakfast Webinar Series, we'll...

Publication

Maine Government Contracting and Procurement Update: Public Access Under FOAA to Trade Secrets in Proposals and Bid Documents

Those doing business with state, county, and local government in Maine need to know their way around public records laws. What is the risk that sensitive or proprietary business information submitted in response to...

News

Benchmark Litigation Names Preti Flaherty 2024 “Maine Firm of the Year"

Benchmark Litigation  has named Preti Flaherty as 2024 Litigation Firm of the Year in the State of Maine. Through extensive peer- and- client reviewed research, as well as analysis of casework; the Benchmark Awards...

News

Preti Flaherty Welcomes Trust and Estate Attorney Elise Salek to the Firm

Preti Flaherty is pleased to announce that Elise Salek has joined the firm’s Trusts & Estates Practice Group. Practicing out of the firm’s Concord, New Hampshire office, Elise brings nearly three decades of experience...