Legal Battle Between GREC and GRU Continues
Published August 2nd, 2013
GAINESVILLE- The failed claim cost the city substantial attorneys' fees.
GRU paid more than one million dollars in legal fees over the past for issues related to biomass.
And GREC's counter- claim threatens to cost the city 50 million dollars in damages.
GRU's Bob Hunzinger was sharpply questioned by some residents during Thursday night's city commission meeting.
The city not only lost its arbitration dispute with GREC, it spent hundreds of thousands of dollars on legal fees paid to an outside firm.
The city claimed that GREC broke its contract.
In two separate 2011 sales a total 60 percent stake of the biomass plant ownership was transferred... A move that GRU challenged.
GRU filed an arbitration claim-- saying the contract gave the city the right of first offer to purchase a controlling share of GREC.
But the judge ruled that two individual transactions joined together does not justify a change of majority control, even if it totals more than a 50 percent stake.
Biomass opponents say GRU never had a strong chance of winning the claim.
Local Attorney, Ray Washington says, "this was kind of in my opinion a hail mary pass,you know let's try to buy it, if we buy it we can try to renegotiate some of the contract,we can maybe cut back on some things. I'm not sure it would've been a good idea because it may be more of these, i'm gonna call them shell games where you push it off to the future."
GREC owners claim that GRU never had any intention of buying the plant and was simply looking for a way to back out of the contract.
While GREC was seeking investors in the biomass plant.
GREC filed a counterclaim, asking the judge for millions of dollars in damages.
If no agreement is reached by August 14th an arbitrator will make a ruling.
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