ASRC Energy Services Power v. Golden Valley Electric

This case arose from an award by Golden Valley Electric Association (GVEA) of two competitively bid construction contracts on its Northern Intertie Project. In November 2001 GVEA awarded Global Power & Communications, LLC (Global) a $39.4 million contract (Contract NI-8) for construction of the Northern Intertie’s Tanana River flats section. Later GVEA awarded Global an approximately $5.3 million contract (Contract NI-9) for construction of the Northern Intertie’s Tanana River crossing and Fairbanks sections. Subsequently, after Global had been awarded NI-9 and before it had completed work on NI-8, Global presented GVEA with requests for additional compensation (RFIs) totaling approximately $2.4 million in connection with NI-8. GVEA responded that it found "no legitimate basis" to justify Global’s RFIs and rejected Global’s request for additional payment. Global also notified GVEA that Global would submit more RFIs, arising out of both NI-8 and NI-9. In all, Global sought additional compensation totaling $5.7 million under the two contracts. GVEA responded to Global denying most of the RFIs but indicated that it would approve a few and consider partial payment for a few others. Global sued, and a trial court ultimately held in GVEA's favor, awarding it costs under both the contract and the applicable state law. Global appealed, arguing among other things, the trial court abused its discretion in ruling in favor of GVEA. Upon review of the lengthy record from the trial court, the applicable legal authority and legislative history, and the two contracts in question, the Supreme Court partly affirmed and partly vacated the trial court's decision. The case was remanded for: (1) a fee determination regarding GVEA’s "UTPA" claim against Global and (2) a new trial on causation and damages relating to GVEA’s breach of NI-9. View "ASRC Energy Services Power v. Golden Valley Electric" on Justia Law