Happy Ending After Energy Client Gets Stiffed by Foreign Government
The Shutts & Bowen team reaches a settlement to enforce an unpaid contract to build and operate two power plants.
December 09, 2019 at 06:00 AM
2 minute read
ARBITRATION
Ed Patricoff, Kristin Drecktrah Paz and Martha Ferral
Shutts & Bowen
LS Energia was in a tough spot. The electrical power plant builder and operator built two power stations for Angola but was paid less than half by the government.
The Plantation-based company and government agreed to a power generation contract in 2013. The company stopped producing power in Angola in 2017, the same year President Jose Eduardo dos Santos left office after 38 years in power and years after payments stopped.
The Shutts & Bowen team reached a settlement worth more than $49 million in a civil case after getting U.S. government advocacy as well as support from a former Angolan ambassador to the United States and an Angolan economic affairs official.
The law firm has built a bit of a cottage industry in litigation against Angola, recovering $45 million in 2016 in a lawsuit by Jacksonville-based APR Energy and representing Africa Growth Corp. in a dispute over affordable housing. Patricoff also has represented U.S. clients in payment disputes with Libya and Tanzania.
Describe a key piece of testimony, evidence, ruling or order in your case and how it influenced the outcome: We believe there were two key events in the litigation, which resulted in the excellent resolution of the matter in favor of our client, LS Energia.
First, the federal district court granted jurisdictional discovery from the government of Angola, which led to an agreement to mediate the dispute in Lisbon, Portugal.
The second key event was the mediation, which led to the settlement agreement between the government of Angola and LS Energia.
We believe both of these events were inextricably intertwined and interrelated because the agreement to mediate came about almost immediately following the district court's order allowing discovery.
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