Austin Business Attorney Reports Breach of Contract Lawsuit Against Texas Wind Energy Company | The Law Offices of Gregory D. Jordan

Austin Business Attorney Reports Breach of Contract Lawsuit Against Texas Wind Energy Company

Breaching contractual obligations can have devastating consequences. Sometimes a large claim may signal the potential demise of a company. In Trinity Structural Towers Inc. v. Suzlon Wind Energy Corp., Trinity alleges that Suzlon failed to follow through with its purchases of structural towers as set out in their 2008 supply agreement.

The amount at stake is quite large and may indicate a serious problem with Suzlon. The agreement at issue allegedly provides that Suzlon was to buy $377.3 million wind towers through 2011. The parties amended the original 2008 agreement to buy an extra $123.8 million wind towers through 2013. Trinity says that only $88.6 million worth of 80-meter wind towers has been bought.

“On the one side, TSTI argues that they have incurred substantial damages because the contract has been breached,” says Austin business litigation lawyer Gregory D. Jordan. “On the other side, Suzlon claims the lack of purchases is due to the downtown in the market. Whether this argument will present a defense to the breach of contract claim will be interesting to see.”

Wind energy has become a growing source for power not only in Texas but the nation. The amount of electricity generated through wind power has increased dramatically in the past few years. In fact, Suzlon has been promoting that it won a contract to supply 57 2.1MW turbines to western U.S. wind farms and 68 2.1MW turbines to Pennsylvania in 2012.

“With this positive news from Suzlon, TSTI may be wondering why there has been a lack of purchases,” said Jordan. “Perhaps there is a valid explanation, but something will have to give, somewhere. When contract breaches occur, everyone is usually hoping for a resolution to happen quickly and efficiently, or else everyone starts to lose.”

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