Energy Companies Secure $40 million Win in New York Appeals Court

2 minute read | December.18.2024

Siding with an Orrick team led by partner Tom Kidera, a New York appeals court provided a sweeping win to a collection of energy companies against a competing energy company to whom our clients sold interests in a natural gas pipeline.
A five-judge panel of the First Department of New York’s Appellate Division this week issued a unanimous ruling adopting our arguments and overturning a trial court decision that previously denied our summary judgment motion. The win on behalf of Alta Gas, Ares, Coterra and Arc57 relates to more than two years of litigation over the interpretation of the indemnification provisions under the parties’ purchase and sale agreement, with both sides claiming entitlement to $21 million that had been placed in escrow upon the sale of the pipeline interests, and the opposing side cross-claiming additional damages amounting to upwards of $40 million in total.
The appellate decision directed the trial court to issue an order entitling the seller clients to recovery of both the amounts in escrow as well as reasonable attorneys’ fees in accordance with the applicable contract’s prevailing party provision.

In addition to Tom, the team included partner John Ansbro and associates Julie Lee, Ana Mendez-Villamil, and Shane McCammon with assistance from Blake Winburne, Brad Gathright, and Grace Lentz who had worked on the subject sale.

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Thomas Kidera Partner, Renewable Energy, Financial Services Investigations & Enforcement

New York

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Practice:

Renewable Energy
Financial Services Investigations & Enforcement
Energy & Infrastructure
Complex Litigation & Dispute Resolution
Trials
Asset‐Backed Securities

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Thomas Kidera Partner

New York

Tom represents Orrick's renewable energy and infrastructure clients in a vast array of commercial, warranty, and construction litigation matters throughout the U.S. and around the globe, previously having served as a member of the Orrick team that represented Hemlock Semiconductor (a leading producer of solar-grade polycrystalline silicon) in a host of litigations and proceedings arising from the breach of its long-term supply agreements by counterparties. His practice touches all types of renewable energy disputes from PPA litigation, to development and construction claims, to component supply and performance disputes, and everything in between.

In addition to representing his clients in courts and confidential arbitrations, Tom regularly provides pre-litigation counseling to Orrick's renewable energy and infrastructure clients, helping them manage their enterprise liability and pursue and defend claims through mediation and pre-dispute procedures, often resolving matters amicably before they devolve into full litigation or arbitration.

Tom also has litigated structured finance issues for his entire career, representing securitization sponsors and loan servicers in an array of litigations from securities fraud and loan repurchase disputes to ERISA and consumer class actions, also consulting and advising on the interpretation of securitization documents and events of default.

In addition, Tom represents audit firms and accountants in regulatory proceedings commenced by the SEC and the PCAOB along with related civil litigations. He has experience managing and conducting large scale internal investigations, liaising with regulators, remediating problems, and managing risk and liability in delicate circumstances.

Tom maintains an active pro bono practice representing asylum seekers and U.S. veterans seeking discharge status upgrades.

John Ansbro Partner, Complex Litigation & Dispute Resolution, International Arbitration & Dispute Resolution

New York

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D:+1 212 506 3741
E: [email protected]

Practice:

Complex Litigation & Dispute Resolution
International Arbitration & Dispute Resolution
Mass Torts & Product Liability

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John Ansbro Partner

New York

John litigates a wide range of commercial disputes, including financial services litigations involving RMBS, disputes in the wind and solar power industries across a host of contractual issues, construction disputes, long-term take-or-pay and liquidated damages disputes, force majeure, bankruptcy litigation, insurance recovery, and commercial real estate foreclosure. He was also an arbitrator on an ICC International Court of Arbitration panel in a cross-border industrial contract dispute.

COVID-19’s unprecedented global market impact has clients across an array of industries seeking John’s counsel on force majeure and related breach of contract disputes. These include force majeure matters across jurisdictions and industries, including Energy & Infrastructure, Pharmaceuticals, Financial Services, Real Estate, Hospitality, and Retail.

John litigates significant, high stakes matters. For example, in 2017 on behalf of his client Hemlock Semiconductor Corp., in a case of first impression in Michigan, on appeal John won the dismissal of an attempt by a Japanese conglomerate to avoid $1.4 billion in purchase obligations on the theory that alleged acts by the Chinese Government constituted an “act of government” under the parties’ force majeure provision. The Michigan Bar Journal declared it one of the top 10 business cases of 2010-2019. In 2019, one of the very few RMBS actions to be tried, John was trial counsel for Credit Suisse Securities USA in a $700 million dispute in the Supreme Court of New York. At trial he handled the defense expert in the critical area of loan underwriting.

Prior to joining Orrick, John was a Litigation Associate at Donovan Leisure Newton & Irvine LLP.

Julie Lee Managing Associate

Washington, D.C.

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D:+1 949 852 7715
E: [email protected]

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Julie Lee Managing Associate

Washington, D.C.

Julie focuses her practice on business litigation, and she represents clients across the financial, technology, and energy sectors. She has extensive experience in successfully litigating complex commercial cases, both at the trial and appellate levels. Julie also tailors her experience to our clients' specific needs to achieve favorable results through mediation, arbitration, regulatory proceedings, and strategic business negotiations.

Prior to joining Orrick, Julie was a judicial law clerk to the Honorable Dana M. Sabraw of the United States District Court for the Southern District of California.

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