can you say appeal???? It will be years b/f any of this money is disbursed. Sorry Jobu
----- Original Message ----- From: "Joel Perry" <[EMAIL PROTECTED]> > Huntsville Utilities wins millions in supplier suit > ProLiance may pay more than $33M; refunds possible > Friday, February 11, 2005 > By STEVE DOYLE > Times Staff Writer [EMAIL PROTECTED] > DECATUR - A federal jury Thursday ordered Indianapolis-based ProLiance > Energy Corp. to pay Huntsville Utilities $33.5 million for fraud, > conspiracy, breach of contract and other misdeeds. > > The verdict, which could be increased to nearly $50 million under federal > racketeering laws, was a huge relief for utility General Manager Bill > Pippin. For more than two years, he's claimed ProLiance suckered the city > into a long-term natural gas supply deal with promises of cheap gas, then > devised an elaborate billing scheme to hide the true charges. > > "A gas company tried to rip us off, and they got caught," Pippin said. "This > is a victory for the customers of Huntsville Utilities." > > Just how big a victory remains to be seen, however. > > Pippin said part of the ProLiance money will be used to replenish the > utility's cash reserves and complete natural gas projects delayed because of > tight finances. > > The rest could go to the utility's 47,000 natural gas customers in the form > of lower rates or even individual refunds, he said. > > Huntsville increased rates twice last fall because of soaring natural gas > prices on the commodities market. The rate hikes - 5 percent in October, > followed by 8.15 percent in November - are costing customers an extra $13 a > month, on average. > > Jurors sided with Huntsville on almost every claim against ProLiance: Breach > of contract, breach of fiduciary duty, fraud, fraudulent inducement, > conspiracy to defraud, and intentionally interfering with the utility's > business relations by threatening to sue a gas supply company the city tried > to hire after the ProLiance problems came to light. > > It wasn't a clean sweep, though. Jurors rejected utility claims that > ProLiance illegally converted the city's natural gas reserves to its own > use. > > The jury said ProLiance is liable for $8.2 million in actual damages and $25 > million in punitive damages. Harry Bush, the ProLiance salesman at the > center of the scandal, was ordered to pay $200,000, and ProLiance attorney > Briane House $35,000. > > Greg Revera, a utility attorney, said actual damages could be tripled - to > $24.9 million - under the federal Racketeer Influenced and Corrupt > Organizations (RICO) Act. However, Huntsville Utilities probably won't > collect for a while. > > House hinted ProLiance would ask the U.S. Court of Appeals in Atlanta to > review several "potentially reversible errors" he said were made during the > nearly three-week trial. > > The instruction form jurors used in their deliberations wasn't clear enough > on some claims, House said. Also, ProLiance criticized U.S. District Judge > Virginia Hopkins' decision not to let jurors examine paperwork showing John > DeMent, the utility's former natural gas manager, agreed to a controversial > "Winter Leveling" payment plan and subsequent selling of the city's gas > reserves. > > Hopkins ruled before the trial began that DeMent was not authorized to enter > into such deals without his bosses' knowledge. > > Huckaby said the jury's $25 million punitive damage award makes a "strong > statement" about ProLiance's conduct. > > "I'm enormously gratified," he said, "that the jury was able to see the > wrong done, really to the city of Huntsville." > > In his closing argument Wednesday, ProLiance attorney Jere White conceded > Bush was a "pushy salesman." But he said there was no evidence Bush meant to > harm Huntsville Utilities. > > > > > > _______________________________________________ > RTF mailing list > RTF@rolltidefan.net > http://rolltidefan.net/mailman/listinfo/rtf_rolltidefan.net > _______________________________________________ RTF mailing list RTF@rolltidefan.net http://rolltidefan.net/mailman/listinfo/rtf_rolltidefan.net
