California energy company faces breach of contract lawsuit from Texas company over fuel cell service

by John Chapman

A Texas company has filed a lawsuit for breach of contract and other allegations against a California energy company. Unicat Services Inc., based in Alvin, Texas, filed a claim against Bloom Energy Company of Sunnyvale, California in connection with an agreement between the two companies regarding a contract to service fuel cell canisters.

Unicat alleges that it was contacted by Bloom in early 2013 for the purpose of performing service on fuel cell canisters used by the energy company for its fuel cell energy generating business. Unicat and Bloom signed a contract for the Texas company to service the energy company’s fuel cells in July 2013, according to the lawsuit.

Because of unforeseen delays, the facilities built by Unicat did not become operational until October 2013. At that point, Bloom sought to negotiate a lower price from the company to service the fuel cells. Unicat says that it agreed to this price reduction because, since it had already invested substantial amounts of money in the facility and hired several employees, it did not want its investment to go to waste.

However, Unicat alleges that after agreeing to lower its price, Bloom began to lower the number of fuel cell canisters it needed to be serviced starting in 2015. That summer, while Unicat was in the middle of expanding its operations, Bloom terminated its contract with the Texas company.

Unicat’s lawsuit alleges breach of contract, commercial fraud, and deceptive trade practices on the part of Bloom Energy. The company’s commercial lawsuit against the California energy company seeks compensation for monetary damages that occurred because of Bloom’s alleged breach of contract, along with interest, attorney’s fees, and an award for punitive damages.

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Breach of contract claims involve allegations that the terms of a commercial agreement have been broken by one of the parties to that agreement, leading to financial losses or other damages. The attorneys at Heygood, Orr & Pearson have handled hundreds of cases involving claims of breach of contract or other commercial disputes. Our attorneys have represented some of the largest corporations in the world as well as small “mom and pop” businesses caught in a fight with huge multinational conglomerates.

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by John Chapman

John Chapman is a licensed attorney with experience in complex commercial litigation (including securities fraud, RICO, shareholder oppression, and derivative actions) and personal injury litigation.