Edison going ahead with litigation after plant shutdown

Edison going ahead with litigation after plant shutdown

On Behalf of | Jul 26, 2013 | Uncategorized |

The business world can be volatile; especially when it comes to contractual obligations. There is a saying that a contract is meant to be broken. But the majority of the time Baton Rouge businesses do want to hold up their end of the bargain. Unfortunately, due to unforeseen circumstances or monetary issues, not all contracts are held to their word.

In a recent fight between Southern California Edison, a power company, and Mitsubishi, Edison says that defective equipment caused its nuclear plant to shut down earlier than expected. The reactor was shut down in early 2012 after almost new tubes were found to be damaged which resulted in a small radiation leak.

The plant was closed for good this year after officials decided the plant could not be operated safely. The damage to the tubes was caused by them badly vibrating, which was not supposed to happen. The generators made by Mitsubishi were supposed to operate for 40 years; Edison feels they did not deliver on this agreement. Edison is looking to recover damages from Mitsubishi that could potentially reach billions of dollars from litigation.

Although most business may not see a breach of contract on this large of a monetary scale, problems from contractual issues can be financially and operationaly problematic for many companies. Businesses of all sizes rely on contracts to provide services and if those companies cannot operate as it was intended due to a breach, businesses need a remedy. A business attorney can help determine if a breach is valid or if there is the potential for compensation or enforcement of the contract.

Source: 9 WAFB, ” Mitsubishi blamed in Calif. Nuclear Plant Closure,” July 18, 2013