Phoenix Developer Sues California Energy Company

Online, February 10, 2011 (Newswire.com) - PHOENIX, Arizona - Phoenix area developer Dominion Real Estate Investments, LLC and one of its affiliated entities filed a lawsuit against Space Energy Terrestrial, Inc., an alternative energy company operating out of California, charging that Space Energy failed to fulfill its obligations to develop a solar power facility in Buckeye, Arizona. Dominion Real Estate Investments, LLC is a commercial developer that recently entered the alternative energy market. Its case is based on "Space Energy's failure to fulfill its promises to develop a much needed large-scale solar facility," Dominion Real Estate Investments, LLC Managing Partner Robert Dwyer said.
The lawsuit was filed late last week in Maricopa County Superior Court. It says Space Energy and one of its vice presidents, Richard Kerns, falsely represented its ability to develop the solar power facility project that Dominion Real Estate Investments, LLC had been working on for an extensive period of time. The suit alleges that Defendants Space Energy and Kerns falsely represented that they had successfully completed a number of solar projects, that they had more than adequate capital to fully finance the proposed project, and that they were experienced in the permitting and construction processes that were vital to the project. The lawsuit references a purchase and sales agreement entered into by the parties which involved the construction and operation of a solar power facility that would sell solar produced electricity to Arizona Public Service Company. "We secured the necessary land for the project, obtained the requisite agreements from Arizona Public Service Company , and completed all the critical tasks to assist Space Energy in furtherance of its obligations under the agreement," Robert Dwyer said. But when it came to actually performing and providing the financing, Space Energy was nowhere to be found.
This alternative energy project would have cost approximately $25 million and employed as many as 400 people during construction. Despite acquiring suitable land and the regulatory infrastructure for the project, Dominion Real Estate Investments, LLC was unable to replace Space Energy prior to expiration of its agreements with APS. The lawsuit also includes a claim for the breach of the implied covenant of good faith and fair dealing, and unspecified monetary damages.