Breach of EPC Contract by Bechtel Power Corp.

Represented American Municipal Power (“AMP”) in AMP v. Bechtel Power Corp., a dispute related to the cancellation of the 960-megawatt coal-fired AMPGS power plant located in Meigs County, Ohio. After AMP and Bechtel Power Corporation (“Bechtel”) entered into a multibillion-dollar EPC contract and Bechtel advised AMP to enter into multimillion-dollar contracts for the procurement of major plant equipment, Bechtel increased the construction estimate from $2.1 billion to over $3 billion. AMP thereafter sued Bechtel for $97 million for wanton and reckless breach of the EPC contract.  In March 2014, the U.S. District Court for the Southern District of Ohio denied in part and granted in part a motion for summary judgment submitted by Bechtel.  AMP moved to certify a question of Ohio law relevant to the summary judgment order to the Supreme Court of Ohio. The District Court certified the question to the Supreme Court of Ohio where the issue was briefed and argued. The parties then engaged in mediation that resolved the litigation.