5th Circ. Denies Arbitration For 2nd Time In Texas Wind Case

Law360 (March 18, 2019, 7:25 PM EDT) -- The Fifth Circuit said Friday a dispute between a wind power supplier and a Texas utility over whether there was a liability cap for the utility if it stopped purchasing power was not related to performance and was therefore outside of the scope of their contract's arbitration clause.

A three-judge panel overturned a lower court's decision and said Friday that Papalote Creek II LLC was not obligated to arbitrate a dispute over whether Lower Colorado River Authority enjoyed a $60 million liability cap for ending its power purchases.

The dispute over arbitration has been up and down the courts; this is...

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