Pittsburgh, PA— LAWFUEL – The Law News Network – Lawyers from the Pittsburgh office of Kirkpatrick & Lockhart Nicholson Graham LLP (K&LNG) prevailed on behalf of Michael D. Hanna in a federal court lawsuit alleging breach of oral contracts between Hanna and Strategic Energy Holdings (SEH). This $4.8 million victory is one of the largest awards ever entered in favor of an individual based on an oral contract.
Thomas R. Johnson, the lead K&LNG lawyer in this dispute, said “This victory for Mike Hanna gives businessmen and businesswomen confidence that courts will enforce their contracts, including oral contracts, and award full damages.”
Hanna represented SEH in negotiations with Great Plans Energy and its affiliates, in which Great Plains was obligated to buy out SEH’s 11.45% interest in Strategic Energy LLC (SEL), the Pittsburgh, PA-based energy management company. Among other things, Hanna was to receive a certain percentage of anything SEH received resulting from a valuation of SEL over $600 million.
Although the valuation of SEL was determined to be $776 million, SEH argued that Hanna should not receive his compensation because the deal between SEH and GPE did not close by certain deadlines. Hanna testified that no deadlines existed. U.S. District Court, Western District of Pennsylvania, ruled in Hanna’s favor on all contested issues and awarded him the full damages of $4.4 million, plus interest, for a total of $4.8 million.
Hanna commented: “There was a considerable amount at stake in this matter. We are pleased that the court recognized the validity of my oral contract with SEH and fully upheld our agreement.”
