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Case Studies - Utilities
Breach of Contract/Lost Profits
Case Study A
Engagement
The client owns a waste coal fired power generation utility. It was discovered that certain rotors inside the turbine had failed causing a complete shutdown of the facility resulting in property damage, extra expenses and business interruption losses. Subsequently, during the repair of that rotor failure, it was discovered that additional rotors had failed, again resulting in property damage, extra expenses and business interruption losses.
Gleason's Role
Gleason & Associates was retained to prepare an insurance claim for property damage, extra expenses and business interruption losses incurred during both loss periods. Gleason & Associates verified expenditures of funds by the Claimant for property damages and extra expenses and prepared a model of the business interruption losses incurred by the Facility during the shutdown periods as well as the periods of reduced output caused by operating the Facility without the damaged rotors as the Facility attempted to mitigate its damages.
Results
After a review of invoices, check copies, and production records of the daily output of the Facility, Gleason & Associates calculated a total of approximately $12.9 million in damages. During the third day of the trial in the Federal Court of the Western District of Pennsylvania, the parties settled the litigation for approximately $6.7 million in favor of the Plaintiff.
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