A Deal is a Deal: Nossaman Succeeds in Upholding the Terms of a Contract

We successfully defended Eurus Energy America Corporation in a multi-claim contract dispute connected to the development of two renewable energy projects in Hawai’i resulting in a total defense victory on summary judgment.

In 2012, our client Eurus Energy America Corporation (Eurus) entered into a consulting services agreement (CSA) with Sunfarms, LLC (Sunfarms). The CSA related to the possible development of two renewable energy projects in Hawai'i. Eurus had the option to terminate the CSA without cause and did so in February 2017 after paying Sunfarms substantial amounts under the CSA. Sunfarms and its sole manager, Mitch Dmohowski, promptly sued, asserting that Eurus breached the CSA and failed to act in good faith in connection with its termination.

The lawsuit, Sunfarms, LLC v. Eurus Energy America Corporation, was heard in the U.S. District Court, Southern District of California (Case No. 3:18-cv-00058). Early in the case, we successfully obtained the dismissal of Plaintiffs’ claims for fraud and unfair competition. Stripped to its contract claims, the dispute centered on the conditions required to trigger a milestone payment, the parties’ negotiations concerning a royalty agreement and timing of payments, the interpretation of the term “shortlisted” as used in the CSA, and whether Plaintiffs’ suffered any of the $15 million in damages that they claimed they suffered.

Following a lengthy discovery period involving dozens of depositions and expert discovery that took place against a backdrop of unique COVID-19 protocols, we filed a Motion for Judgment on the Pleadings to eliminate Sunfarms’ equitable claims and a Motion for Summary Judgment on Plaintiff’s contract claims. The Court granted both motions and entered judgment in Eurus’ favor on all of Plaintiffs’ claims.

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