Renewable Energy Firm Sues German Wood Pellet Manufacturer

A renewable energy company has filed a lawsuit in a Texas court, accusing a German firm of breach of contract.  Forestech Energy claimed in the suit that it had invested considerable time and money into a partnership with the German pellets company.  According to the lawsuit, the two entities were to work together to develop an East Texas facility to mill and export wood pellets to Europe.

The lawsuit, filed May 24 in Jefferson County District Court, states that the two companies had agreed to establish a mill in Woodville and a shipping facility in Beaumont.  According to the complaint, German Pellets had issued a letter of intent to the American firm, proposing the formation of a limited liability company, Texas German Pellets.  The suit claims that Forestech was to receive an equity interest and a management fee, while the German company would secure financing.

The suit claims that representatives of the two companies met on several occasions to advance the project, that Forestech invested money into obtaining permits and contracts, and that German Pellets purchased the property for the site and did engineering and demolition work.

Forestech is now claiming that the German company failed to record Forestech’s interest in the new firm and has not paid management fees.  The complaint further alleges that Forestech has been prevented from proceeding with the project because German Pellets has failed to finish construction or begin operations.

The lawsuit was filed in 60th District Court, and the case will be heard by Judge Gary Sanderson.

Gregory D. Jordan is an Austin business litigation attorney and Austin business lawyer.  To learn more, visit https://www.theaustintriallawyer.com.