6th Circ. Denies Gas Utility's Bid For Sovereign Immunity

Law360, New York (July 19, 2013, 3:57 PM EDT) -- The Sixth Circuit on Friday shot down the Municipal Gas Authority of Georgia’s attempt to claim sovereign immunity in a battle with a Tennessee client over the price of natural gas, saying the utility is not intertwined with the state of Georgia to qualify for immunity.

The dispute arises from the Gas Authority’s commitment to a multiyear hedge contract for its acquisition of gas, which set a contract price and volume of gas through the year 2014, and then passed these costs on to the city...
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