A California judge has overturned a jury verdict that had gone in favor of the original developer of the Kauai Power Partners power plant along Ma‘alo Road in Kapaia. Judge William C. Pate also set aside a $550,000 award a
A California judge has overturned a jury verdict that had gone in favor of the original developer of the Kauai Power Partners power plant along Ma‘alo Road in Kapaia.
Judge William C. Pate also set aside a $550,000 award a San Diego jury granted to Power Partners International, former parent company of Kauai Power Partners, in a breach-of-contract case against Dominion Resources, Inc., the plant’s current owner.
Although Pate ordered a new trial, and Friday re-affirmed his earlier ruling, Dominion officials won’t request a new trial, a Dominion spokesman said.
“We’re not going to seek another trial,” said Mark Lazenby, Dominion spokesman.
“The plaintiff is entitled to nothing. We contended that all along,” he said.
“We won properly, and we’re walking away. In our view, it would be very difficult for the other party to appeal,” Lazenby said. “So, essentially, we’re done with it.”
Neither John Burns, of Power Partners International, nor John Howard, attorney for Power Partners, could be reached for comment.
Power Partners International developed the 26-megawatt power plant on the road to Wailua Falls, which during construction was sold to an entity later acquired by Dominion.
Power Partners officials claimed they were entitled to a bonus of just over $1 million for finishing the project under budget, but Pate in his “telephonic ruling” said evidence entered during the August trial showed the budget for the plant was $34 million, but the actual cost to build the plant was $54 million.
Howard argued that no project budget existed, therefore his clients were entitled to the bonus.
Pate disagreed, and further found Howard to have a conflict of interest by at different times representing both Power Partners and Consolidated Natural Gas, the company bought by Dominion.
Pate set aside the jury verdict and monetary award, and ordered a new trial, based both on Howard’s conflict, and the fact “the verdict of the jury is not supported by substantial evidence.”
“This is a legal slam dunk for Dominion,” said Lazenby.
The apparent end of the legal dispute did not have, and will not have, any impact on the Kaua‘i Island Utility Cooperative plan to purchase the power plant from Dominion for just over $40 million, said KIUC spokesperson Anne Barnes.
The sale of the plant requires approval of the state Public Utilities Commission, which is anticipated to make a decision by the end of this month.
There has been no public request for the PUC to hold a Kaua‘i public hearing on the sale.
The plant generates around half of the island’s electricity.
Associate Editor Paul C. Curtis can be reached at pcurtis@pulitzer.net or 245-3681 (ext. 224).
