On January 7, 2020, McKool Smith secured a significant appellate victory on behalf of Soaring Wind Energy, LLC and its investors before the U.S. Court of Appeals for the Fifth Circuit, affirming a $63 million arbitration award for the plaintiffs against Catic USA following a failed wind energy joint venture.
In its decision, the Court rejected the defendants’ argument that the arbitration tribunal exceeded its authority by ordering it to divest its interest in Soaring Wind. Instead, the Court found that the arbitration tribunal's divestment order was permissible under contractual terms. The Court also rejected arguments that the arbitration had been unfairly manipulated by other investors in the joint venture.
Soaring Wind Energy, LLC is represented by McKool Smith Principal Lewis T. LeClair.
Media coverage of the ruling:
5th Circ. Enforces $63M Award Over Soured Wind Energy JV, Law360 (01-07-2020)
"The Fifth Circuit on Tuesday affirmed a ruling enforcing a $62.9 million arbitral award against the American arm of China’s state-run aerospace corporation, rejecting arguments that the arbitration had been unfairly manipulated by other investors in a failed wind energy joint venture".
Fifth Circuit Upholds $62.9M Arbitration Ruling Against Chinese Wind Farm Investor, The Texas Lawbook (01-09-2020)
"In a case that questioned the power of arbitration panels to resolve issues with foreign-owned companies, the U.S. Court of Appeals for the Fifth Circuit Tuesday upheld a $62.9 million arbitration award against a Chinese-owned holding company."
5th Circuit signs off on $62.9 million arbitral award for Texas Wind Energy Co, Reuters, (01-09-2020)
"A federal appeals court has said the U.S. subsidiary of China’s state-owned Aviation Industry Corporation (AVIC) must pay a $62.9 million arbitral award to a Texas-based wind energy company for breaching the contract that set up the failed joint venture."