UEC prevails against contractor's direct claims related to design and construction of 500 megawatt combined cycle power plant

Client(s) Xcel Energy Inc. and Utility Engineering Corporation

Jones Day represented Utility Engineering Corporation ("UEC"), the engineering firm hired by the Sacramento Municipal Utility District ("SMUD") to design a 500 megawatt combined cycle power plant in Northern California. SMUD terminated the contractor hired to construct the plant before the plant was completed. The contractor filed suit against SMUD and attempted to assert direct claims against the owner’s engineering firm, alleging that errors, omissions and deficiencies in the project design resulted in delays and increased costs. The district court granted UEC's motion to dismiss the design professional without leave to amend on the grounds that the contracting scheme at issue on the project did not allow for direct claims by the contractor against the owner’s engineering firm.

Fru-Con Construction Company v. Sacramento Municipal Utilities District, et al., No. 2:05 CV-0583 (E.D. Cal.)