Appeals Court Strips ERCOT of Immunity in Wake of Winter Storm Uri Litigation
"We discern no legislative directive that ERCOT, a private, independent, membership-based, nonprofit organization, has sovereign immunity," the en banc panel ruled.
February 25, 2022 at 11:40 AM
3 minute read
Litigation
In a ruling that could have a major impact on Winter Storm Uri multidistrict litigation, the Fifth District Court of Appeals stripped the Electric Reliability Council of Texas, or ERCOT, of its long-held claim of sovereign immunity to civil lawsuits.
The 12-1 en banc ruling of the Dallas justices in favor of a consortium of electric power entities is expected to be reviewed by the Texas Supreme Court, plaintiff attorney Majed Nachawati said in a statement. However, the strongly worded ruling clearly found ERCOT's immunity claim has no basis in Texas law, he said.
Wallace Jefferson of Alexander Dubose Jefferson in Austin represented ERCOT on appeal. Jefferson said he had no comment at this time.
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