Facts

On June 13, 2003, Western Energy Marketers LLC and defendant Fisher Printing Inc. (Fisher) entered into a written agreement. On June 25, 2003, plaintiff Owl Energy Resources Inc. (Owl) assumed the agreement on behalf of Western Energy. Under the agreement, Fisher agreed to buy electrical and thermal energy created by an electrical cogeneration system constructed and installed by Owl at Fisher's facility. Fisher agreed to buy existing energy output from Owl and agreed to give these purchases priority over other potential energy sources.

Owl sued Fisher alleging breach of contract, conversion, and unjust enrichment. Fisher Printing filed a cross-claim.

PLAINTIFF'S CONTENTIONS:
Owl sued Fisher for breach of contract alleging Fisher's failure to pay six invoices that totaled $65,421. Owl also sought the cost to remove the cogeneration system from Fisher's property of $50,000 and the cost of the equipment of $396,527 as liquidated damages under the power purchase agreement. Owl contended that the purchase agreement did not warrant the amount of energy to be produced and that Fisher waived any breach of the contract when it paid each month's invoice for the power it received and used.

DEFENDANT'S CONTENTIONS:
Fisher counter-sued Owl for breach of contract for failing to maintain the system in good working order, for breach of the implied covenant of good faith and fair dealing, and for recovery of the $396,000 it paid to Owl for the cogenerated energy, pursuant to Business & Professions Code Section 7031. Fisher contended that Owl was required to be a licensed contractor to construct and install the cogeneration system on Fisher's property. Fisher also contended that Owl's status as an unlicensed contractor prohibited Owl from enforcing the contract. Fisher sought to recover $404,297 in utility costs it contended it would not have paid, had the cogeneration system worked properly.

Damages

Owl Energy sought $62,421 in unpaid invoices, $8,023 in interest, $396,527 for the cost of the system, and $50,000 in removal charges. Fisher sought $396,000 as recovery for sums paid to an unlicensed contractor under the contract and $404,297 as excess utility costs incurred by Fisher as a result of Owl's alledged failure to perform.

Result

The jury awarded $289,676 to Owl. The court also awarded Owl attorney fees of $399,716 (which includes prior counsel) and costs in the amount of $17,163.

Other Information

FILING DATE: Feb. 26, 2008.