Paul Hastings Secures Landmark Victory for RWE Clean Energy in $112 Million Trial

Paul Hastings LLP earned a complete defense verdict on behalf of RWE Clean Energy LLC (formerly known as RWE Renewables Americas LLC, the U.S.-based subsidiary of the major German utility, RWE AG) in a $112M dispute regarding the ownership structure of a series of wind farm projects.

The Plaintiffs, two renewable energy investment companies (the “Trireme” entities) majority owned and controlled by the British private equity firm Terra Firma Capital Partners, alleged that RWE breached an agreement between the parties by internally restructuring its portfolio of wind farm projects without first seeking Trireme’s consent or paying Trireme $112 million in allegedly required earnout payments.

On November 19, 2024, after a five-day bench trial, Judge Jennifer L. Rochon of the Southern District of New York ruled that Trireme’s breach of contract claim was barred by res judicata and that, even if it were not barred, the claim fails on the merits. Judge Rochon thus awarded a complete defense verdict to RWE. This is RWE’s second trial victory over the Trireme entities in just over a year. Last December, Judge Rochon also awarded RWE a complete defense verdict in a related case in which Trireme alleged that RWE’s predecessor intentionally delayed construction of a particular wind farm project to avoid paying an approximately $70M earnout payment.

Complex Litigation and Arbitration partner Susan Leader led the Paul Hastings team, which also included associates Paul C. Gross, Sara Bricker, and Jason Denaburg.

More details and a copy of the decision can be found here.

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