- 4 -4
construction contract) with four of its limited partners (the
participating limited partners) and with a contractor
(S-P Construction) and an architect/engineer (collectively, the
S-P parties). The participating limited partners had various
ownership interests in S-P Construction and the architect/
engineer.
Biomass Lawsuit
In 1987, Biomass and Biomass Operating sued the S-P parties
for compensatory and punitive damages relating to their
performance of the construction contract (the Biomass lawsuit).
The original complaint (the first complaint) alleges breach of
contract and negligence and includes claims for damages due to
loss of reputation and goodwill. In March 1988, Biomass and
Biomass Operating filed a third amended complaint in the Biomass
lawsuit (the third amended complaint). The third amended
complaint adds Aetna Ins. Co. (Aetna) as a defendant and includes
more detailed allegations relating to the S-P parties'
performance under the construction contract, but makes no claims
for damages due to loss of reputation or goodwill.
In 1989, the Biomass lawsuit was resolved by agreement (the
settlement agreement). The settlement agreement requires
S-P Construction to pay Biomass funds from its insurers totaling
approximately $9,200,000. The settlement agreement includes a
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011