VANCOUVER, May 15, 2013 /CNW/ - Finavera Wind Energy Inc. ('Finavera') (TSX-V: FVR) announces that the Alberta Court of Queen's Bench has issued reasons for judgment in the case of Scott & Associates Engineering Ltd. ('Scott') v. Finavera Wind Energy Inc.
Scott was claiming a constructive trust over a wind energy project known as the Three Hills Project ('Three Hills'), which Finavera acquired from Penn West Petroleum Ltd. in 2007 and subsequently sold to Ghostpine Windfarms LP, a subsidiary of NextEra Energy Inc ('NextEra'), in 2008. Scott alleged that Finavera acquired Three Hills by misusing confidential information proprietary to Scott and that it misappropriated a business opportunity which belonged to Scott.
The Court dismissed Scott's claims and found that Finavera did not misuse any confidential information, did not breach any contract with Scott and did not misappropriate a business opportunity belonging to Scott. The Court also refused Scott's claims to a proprietary interest in Three Hills or an accounting of the profits from Three Hills. The Court concluded that "Scott has proven only that it is entitled to be reimbursed for the value of the services it has provided…" It found that the appropriate award to Scott for those services was in the amount of $600,000. Finavera continues to have a holdback of $1,000,000 with NextEra related to the 2008 sale, in order to deal with legal costs and any potential judgment.
In describing the testimony of the principal of the Plaintiff, Bryan Scott, the Court stated: "Mr. Scott was clearly trying to put a positive, even hopeful spin on what was occurring. In certain instances, the presentation of his evidence through the lens of his preferred or desired result worked against his credibility …at other times, his testimony was internally inconsistent."
Finavera will be reviewing its legal options in relation to the judgment and will determine if further action is necessary.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a company focused on developing, constructing and operating wind farms in North America and Ireland. Our mission is to create and operate a diversified portfolio of wind projects while protecting and enhancing the physical and social environment. In British Columbia, Canada, four projects totaling 300 MW have been awarded 25 year AAA-rated Electricity Purchase Agreements and one has received full environmental approval and permitting for construction, expected to begin in later 2013. In Ireland, the Company has signed a partnership agreement with SSE plc for development of the 105MW Cloosh Valley Wind Project. Finavera is continuing to opportunistically review prospects for growth and the enhancement of shareholder value.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words "would", "will", "expected" and "estimated" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
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SOURCE: Finavera Wind Energy Inc.
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