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Business litigation in Georgia over nuclear reactors

A nuclear power plant in Georgia is the subject of a recent lawsuit that has two companies suing each other. The business litigation is between Georgia Power Co., a unit of Southern Co.), and Westinghouse Electric Co. The case has been filed in a federal court. Cases such as this one demonstrate the importance of carefully planning and preparing in the event that business litigation does ensue.

Westinghouse is the company that made the filing, and claims that Georgia Power violated a contract between the two companies. Westinghouse alleges that Georgia Power Co. failed to pay more than $900 million in cost for U.S. mandated changes concerning the erection of a Georgia power plant in Waynesboro. Georgia Power countersued, claiming that Westinghouse did not provide adequate plans for the nuclear units.

The CEO of Southern states that the business litigation will not materially impact the project. Minor issues have arisen between the two companies and, according to sources, the two companies were able resolve those issues on their own. The project is still underway, and currently, construction does not have a completed schedule. This is the first time since the 1970s that the U.S. was able to license nuclear reactors. The first reactor to be brought online is tentatively scheduled for Nov. 2016.

Businesses large and small can find themselves in need of guidance in the face of business litigation. Every business and case is different, so business owners may find that having an individual plan of action that is tailored to their specific needs is a catalyst for success. Ideally, representatives from both businesses will be successful in communicating and working through this litigation in order for the project to move ahead toward a successful completion.

Source: Bloomberg Businessweek, "Southern Co., Westinghouse Sue Each Other Over Plant Cost," Tom Schoenberg and Julie Johnsson, Nov. 5, 2012

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